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(^■'/y jy;23^ 



IftCEIVEO 



JAN 19 1990 



lAW LIBhfARY 



The 
NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



EXECUTIVE ORDER 



TSTUl 11 1/5 

iIttiowI y 



PROPOSED RULES 

Agriculture 

Environment, Health, and 
Natural Resources 

Insurance 

Justice 

Real Estate Commission 

FINAL RULES 

Correction 

List of Rules Codified 



ISSUE DATE: JANUARY 1 6, 1 990 
Volume 4 • Issue 20 • Pages 930-1020 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North CaroUna 
Register is available by yearly subscription at a cost of 
one hundred and fi\e dollars (S 105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrati\e Hearings, P. O. Drawer 11666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Di\ision of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute pro\ides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for appro\al by 
the Administrative Rules Re\iew Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrati\e Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request h\ the agen- 
cy, the adopted \ersion will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporan,- rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 day 
whichever is less. An agency adopting a temporary ru 
must begin normal rule-making procedures on the pe 
manent rule at the same time the temporary rule 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) 
a compilation and index of the administrative rules 
25 state agencies and 38 occupational licensing boarc 
The NCAC comprises approximately 15,000 letter siz 
single spaced pages of material of which approximat 
Iv 35% is changed annually- Compilation and public 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Ea( 
state agency is assigned a separate title which is fi 
ther broken down by chapters. Title 21 is designat 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimu 
cost of two dollars and 50 cents ($2.50) for 
pages or less, plus fifteen cents ($0.15) per eai 
additional page. 

(2) The full publication consists of 52 volume 
totaling in excess of 15,000 pages. It is si 
plemented monthly with replacement pages 
one year subscription to the full publication 
eluding supplements can be purchased f 
seven hundred and fifty dollars ($750.00). ] 
dividual \olumes may also be purchased wi 
supplement service. Renewal subscriptions f 
supplements to the initial publication availab 

Requests for pages of rules or volumes of the HCi 
should be directed to the Office of Administrati 
Hearings. 

NOTE 

The foregoing is a generalized statement of the p 
cedures to be followed. For specific statutory langua: 
it is suggested that Articles 2 and 5 of Chapter 150B 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by \'olume, iss 
page number and date. 1:1 NCR 101-201, April 1, 19 

refers to Volume 1, Issue 1, pages 101 through 201 
the North Carolina Register issued on April 1, 198 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per year 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes, 
Subscriptions seven hundred and fifty dollar 
($750.00). Individual volumes available. 



I 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Administrative Hearings 

P. O. Dinner 11666 

Ralcis^h, .\C 27604 

(919) 733- 2678 



Julian Mann, III 

Director 
James R. ScarcL-lla Sr., 

DcpiilV Director 
Molly \lasich. 

Director APA Services 



Staff: 

Ruby Creech, 

Publications Conrdinutor 
Teresa Kilpatrick, 

Editorial /Issistanl 
Jean Shirley, 

Editorial A ssistant 



\. EXECl ri\ E ORDER 

Executive t)rder 100... 



930 



IE PROPOSED REEES 
Agriculture 

Gasoline and Oil 

Inspection Board 931 

Environment, Health, and 
Natural Resources 

l'n\ironniental Management.... 992 
Human Resources 

Health Services 933 

Mental Health, Mental 
Retardation and Substance 

Abuse Services 960 

Insurance 

Fire and Casualty Division "^86 

Justice 
Alarm Systems licensing 

Board ^ 991 

Private Protective 

Ser\ices Board 9^0 

Licensing Board 
Real Estate Commission 993 



HE EINAE REl ES 




Correction 




Division of Prisons 


1007 


list of Rules Codified 


1009 


IV. CEMIEAI[\E INDEX 


lOlS 



NORTH CAROIJNA REGISTER 

Publication Schedule 

(January 1990 - December 1991) 



Issue 


Last Day 


Last Day 


Earliest 


+ 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 

Agency 


Date 


*++++*++ 


++++++++ 


+*****++ 


+++++++* 


+*++++*+ 


01/02,90 


12/07,89 


12/14/89 


02,01/90 


05/01/90 


0I'16,90 


12 20,89 


12'29,89 


02/15/90 


05/01/90 


02 01 ,90 


01/10,90 


01,18,90 


03,03 90 


06/01/90 


02/15,90 


01/25,90 


02,'01/90 


03/17/90 


06/01/90 


03/01 90 


02 08 90 


02/15/90 


03:31/90 


07/01/90 


03 1 5 90 


02 22 90 


03 01/90 


04 14 90 


07 01,90 


04,02,90 


03/12,90 


03/19/90 


05 02/90 


08 01/90 


05;'01 90 


04'09,90 


04 17/90 


05/31,^90 


09/01/90 


06 01 90 


05/10 90 


05/17,90 


07 01 '90 


10 01/90 


07 02 90 


06/11/90 


06/18/90 


08,01/90 


11/01/90 


OS 01,90 


07/11 90 


07/18/90 


08 31 90 


12 0190 


09, 04, 90 


08/13 90 


08'20 90 


10,04,90 


01,01,91 


10/01/90 


09/10 90 


09/17/90 


10/31/90 


02 01/91 


11/01/90 


10,' 11/90 


10 18/90 


11/30/90 


03 01/91 


12/03,'90 


11/08,90 


11 15 90 


01 02/91 


0401/91 


01/0291 


12/07 90 


12/14/90 


02,0191 


05 01,91 


02/01,91 


01/10,91 


01/18/'91 


03,03/91 


06 01/91 


03/0 1, '91 


02/08 91 


02 15/91 


03/31/91 


07/01/91 


04/01/91 


03/11/91 


03/18,91 


05/01/91 


08/01/91 


05/01/91 


04/10/91 


04/17/91 


05/31/91 


09/01/91 


06/03 91 


05/10 91 


05 17/91 


07/03 '91 


10 01,91 


07/01,91 


06/10,91 


06,17,91 


07/31/91 


11/01/91 


08/01/91 


07/11/91 


07/18/91 


08/31/91 


12'01/91 


09 03 91 


08/12 91 


08/19/91 


10/03/91 


01 01/92 


10/01/91 


09/10,91 


09/17,91 


10/31/91 


02/01/92 


11/01/91 


10''11'91 


10/18 91 


12/01/91 


03/01/92 


12/02,91 


11 07 91 


11/14 91 


01,01/92 


0401/92 



♦ The "Earliest Effective Date" is computed assumirii^ that the public liearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency fdes the rule with The Administrath-e Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the txile at the next calendar month meeting. 



EXECUTIVE ORDER 



EXFXUT1\ K ORDKR MJ.MHKR 100 

EXTENSION OF EXECUTIVE ORDER NLMBKR 

98 

Whereas, at the request of the Governor of 
South Carolina and for the purpose of relieving 
human suffering caused by Ilumcane Hugo, by 
Executive Order Number 98, I ordered the waiv- 
ing of weight restrictions, licensing and tax re- 
quirements for vehicles transporting, out of 
South Carolina, trees uprooted or damaged by 
Hurricane Hugo; and 

Whereas, Executive Order Number 98 expired 
on December 4, 1989; and 

WTiereas, the Governor of South Carolina has 
requested me to extend the effccti\e date of 
Executive Order Number 98; and 

Whereas, extensive tree damage occurred within 
North Carolina as a result of Hurricane Hugo 
and the North Carolina forestr\' industry has re- 
quested that the terms and conditions of Execu- 
tive Order Number 98 apply to vehicles 
transporting, from within North Carolina, trees 
uprooted or damaged b\ Hurricane Hugo; 

Therefore, pursuant to Chapter 166A, the 
North Carolina Emergency Management Act, 



and by the authority vested in me as Cjo\emor 
of the State of North Carolina by the (Constitu- 
tion and laws of this state, and with the concur- 
rence of the Council of State; IT IS ORDERED; 

That the term of Executi\e Order Number 98 
is hereby extended until Eebniar)' 3, 1990 subject 
to the following additional conditions; 

Section 1 ; The waiver of weight restrictions will 
conform to the following guidelines: 

(1) Vehicle weight will not exceed the maxi- 
mum gross vehicle weight criteria estab- 
lished by the manufacturer or 90,000 lbs. 
gross vehicle weight, whichever is less. 

(2) Tandem axle weights shall not exceed 
42,000 lbs., and single axle weights shall 
not exceed 22,000 lbs. 

Section 2: The terms and conditions of Execu- 
ti\e Order Number 98 and the vehicle weight 
guidelines set forth in Section 1 above shall ex- 
tend to vehicles transporting, from within North 
Carolina, trees uprooted or damaged by Hurri- 
cane Hugo. 

This the 14th day of December 1989. 



NORTH CAROLINA REGISTER 



9M) 



PROPOSED RULES 



IITU: 2 DKPAR IMKM OF 
AGRK LLlLRi: 



A^. 



otice is hereby given in accordance with G.S. 
I SOB- 1 2 thai the N.C. Gasoline and Oil Inspection 
Board intends to atnend rule( s) cited as 2 \CAC 
42 .0102, .0201. 



Th 



he proposed effectixe date of this action is May 
I. 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on February 15. 1990 at Board Room. Agri- 
culture Bldg.. I W. Edenton St., Raleigh. .\.C. 



Co 



omment Procedures: Interested persons may 
present statements either orally or in writing at the 
public hearing or in writing prior to the hearing 
by mail addressed to A'. David Smith. Secretary 
of the Sorth Carolina Gasoline and Oil Inspection 
Board. P.O. Box 27647. Raleigh. Sorth Carolina 
27611. 

CIIAI'I KR 42 - GASOI INK AND OIL 
INSI'KCnON HOARD 

SKC HON .0100 - PL KI'OSK AND DKUM IIONS 

.0102 DKIIMIIONS 

Except as otherwise defined in Criiapter 119, 
North Carolina General Statutes, the definitions 
applicable in this Chapter are as follows: 

(1) "AS TM" means the -American Society for 
Testing and Materials. 

(2) "Approved denaturant(s)" means materials 
used for denaturing ethyl alcohol for use as 
a motor fuel which have been approved by 
the U.S. Department of the Treasury, Bu- 
reau of /Alcohol, I obacco and firearms and 
the director. 

(3| "Appro\'ed lead substitute" means an I'l'A 
reizistered gasoline additu e tonnulated to 
reduce \al\e seat recession in enLZines de- 
suK'd to operate on leaded gasc)lme and 
which has been apprcncd b\ the Oircctor. 
Such apprt)\al shall he based upon the sub- 
mission of scientific documentation accept- 
able to the Director. 

(4) frV)- "Board" means the Gasoline and Oil 
Inspection Hoard. 

(5) f4> "Cetane number" means the relative ig- 
nition quality of dicsel fuels by the ASTM 
Cetane Method D-613. 

(6) (-if "Denatured fuel ethanol" means ethanol 
meeting the pro\isions of /\S I'M D-4S06, 
"Standard Specif i cation ' ' . Specitlcation for 
Denatured fuel flhanol to be Blended with 



Gasolines for L'se as an Automotive Spark- 
Ignition f'nginc Fuel". 

(7) (4^ "Director" means the director of the 
Standards Division of the North Carolina 
Department of Agriculture. 

(S) (^ "F.PA" means the United States Iinvi- 
ronmental Protection Agency. 

(9) f^ "Gasoline-oxygenate blend" means a 
blend consisting primarily of gasoline and a 
substantial amount of one or more 
oxygenates. This definition includes, but is 
not limited to the following designations: 

(a) Gasohol meaning any motor fuel con- 
taining a nominal ten volume percent 
anh_\drous denatured ethanol and 'K) vol- 
ume percent unleaded gasoline, regardless 
of other name, label, or designation. 

(b) Leaded gasohol meaning any motor fuel 
containing a nominal ten volume percent 
anh\drous denatured ethanol and 90 vol- 
ume percent leaded gasoline, regardless of 
other name, label, or designation. 

(c) /Any gasoline-oxygenate blend which meets 

the EPA's "Substantially Similar" rule. 

(d) .-Vny gasoUne-oxygenate blend for wliich 
there is an existing Clean Air Act waiver 
issued by EPA. 

(e) Any gasoline-oxygenate blend which is not 

subject to EP.A fuel requirements, but for 
which appro\al has been granted by the 
board for sale in North Carolina. 
(10) (^ "Leaded" means any gasoline or 
gasoUne-oxygenate blend which contains not 
less than 0.0.'^ gram ', gram lead per U.S. gal- 
lon (0.01.3 gram ', gram lead per liter) or 
contains an appro\ed lead substitute which 
pun ides a Icail eqiii\alenc\ of al^ least 0.10 
gram lead per US. gallon (0.26 gram per U^ 
ten. 



(11) f-l-0-). "Liquefied petroleum gas" means any 
material which is composed predominantly 
of any of the follovsing hydrocarbons or 
mixtures of same: propane, propxlene. 
butanes (normal or iso-butanc), and 
but\lencs. 

( 12) (-14-^ "Motor Octane Number" means the 
number describing the relative anti-knock 
characteristic of a motor fuel dctcnnined h\ 
ASL.M .Motor Method (D-2700). 

( 1. V) f-1-5-)- "Octane Index" means the number 
tibtained h\ adding the research octane 
number and the motor octane number and 
(.li\ iding the sum by two. 

( 14) f4-if "Ox\genate" means an ox\gen con- 
taining, ashless organic compound, such as 
an alcohol or an ether, which may be used 
as a fuel or a fuel supplement. 



9-?/ 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(15) f+4^ "Oxygenated fuel" means a liquid fuel 
which is a homogeneous blend of 
hydrocarbons and oxygenates. 

( 16) f+^ "Qualitative word or term" means any 
word or term used in a brand name which 
by definition or customary usage indicates a 
level of quality, classification, grade, or des- 
ignation. 

(17) f44^ "Regular" when used as part of a 
brand name and/or as a grade designation 
for gasoline or gasoline-oxygenate blend 
shall be construed to mean a leaded regular 
grade commercial automotive gasoline or 
gasoline-oxygenate blend unless the brand 
name and/or grade designation also contains 
the word "Unleaded" or a word or term of 
equivalent meaning. 

(IS) (-1^ "Research Octane Number" means 
the number describing the relative anti- 
knock characteristic of a motor fuel deter- 
mined by ASTM Research Method 
(D-2609). 

( 19) f-l-rv^ "Substantially Similar" rule means the 
U.S. I-'n\'ironmental Protection Agency's 
"Substantially Sin:iLlar" rule, Section 211 (f) 
(1) of the Clean Air Act [42 U.S.C. 7545 (f) 

(1)|. 

(20) {4^ " Total alcohol" means the aggregate 
total in volume percent of all alcohol con- 
tained in any fuel defined in this Chapter. 

(21) f3ft) "Total oxygenate" means the aggre- 
gate total in volume percent of aU 
oxygenates contained in any fuel defined in 
this Chapter. 

(22) (-34-^ "Unleaded" means any gasoline or 
gasoline-oxygenate blend to which no lead 
or phosphorus compounds have been in- 
tentionally added and which contains not 
more than 0.05 gram ' .' , gram lead per U.S. 
gallon (0.013 gram >. gram lead per liter) and 
not more than 0.005 gi'ams gram 
phosphorus per L'.S. gallon (0.0013 grams 
phoi i phorour . gram phosphorus per liter). 

Documents referred to in this Rule are hereby 
adopted by reference in accordance with G.S. 
150B- 14(c) and are available for inspection in the 
Office of the Director of the Standards Division. 

Stalutoiy Authority G.S. 1 19-26. 

SFXTION .0200 - Ql .M.ITY OV I IQl in I I EL 
PRO DUCTS 

.0201 STAND.AKD SPKCIFICATIONS 

(a) Ihc Board herebv adopts bv reference in 
accordance with CI.S. 150B- 14(c), AS'IM 
D-4S14, "Standard Specification tor Automoti\e 
Spark- Ignition Engine Fuel" as standard specifi- 



cation for gasoline with the following modifica- 
tions: 

(1) Applications for temporary exceptions to 
vapor pressure and vapor/hquid ratio 
specifications as provided in this Subpar- 
agraph may be made to the director. Said 
applications shall contain e\idence satis- 
factory to the director that outlets mar- 
keting gasoUne in North Carolina cannot 
feasibly be supplied from bulk terminals 
furnishing specified \olatility level gasoline 
or that customary sources of supply have 
been temporarily interrupted by product 
shortage and alternate sources furnishing 
specified volatility level gasoline are not 
available. Such temporary exceptions 
granted shall apply only until the next 
meeting of the board at which time the 
board shall establish the duration of the 
exception; 

(2) The minimum lead content for gasoline 
registered and or labeled as "leaded" or 
"regular" shall be as defined in Rule 
.0102(10) of this Chapter; skrtW contain 
fte4- k^t* than (-M4^. gramr . 1*»4 pef U.S. 
gallon (0.013 gramr . k»t*4 f*ef litc ' r); 

(3) Reid \apor pressure and vapor/liquid ratio 
seasonal specifications as listed in this 
Subparagraph may be extended for a 
maximum period of 15 days to allow for 
the disbursement of old stocks. I lowever, 
new stocks of a higher volatility classi- 
fication shall not be offered for retail sale 
prior to the effective date of the higher 
volatility classification. 

(b) The Board hereby adopts bv reference in 
accordance with G.S. 150B- 14(c), ASTM 
D-48I4, "Standard Specification for Automotive 
Spark- Ignition Engine I-uel" as standard specifi- 
cation for gasoline oxygenate blends with the 
following modifications; 

(1) A vapor pressure tolerance not exceeding 
one pound per square inch may be al- 
lowed for gasohol, leaded gasohol, and 
gasoline-oxygenate blends; 

(2) Reid \apor pressure and vapor: liquid ratio 
seasonal specifications as listed in tliis 
Subparagraph may be extended for a 
maximum period of 15 days to allow for 
the disbursement of old stocks. However, 
new stocks of a higher \olatility classi- 
fication shall not be offered for retail sale 
prior to the effective date of the higlicr 
volatility classification; 

(3j Applications for temporary exceptions to 
vapor pressure and vapor liquid ratio 
specifications as provided in this Subpar- 
agraph may be made to the director. Said 



NORTH CAROLINA REGISTER 



9.U 



PROPOSED RULES 



applications shall contain evidence satis- 
factory to the director that outlets mar- 
keting gasoline in North Carolina cannot 
feasibly be supplied from bulk terminals 
furnishing specified volatility level gasoline 
or that customary sources of supply have 
been temporarily interrupted by product 
shortage and alternate sources furnishing 
specified volatility le\el gasoline are not 
available. Such tcmporar>' exceptions 
granted shall apply orily until the next 
meeting of the board at which time the 
board shall establish the duration of the 
exception; 

(4) The minimum temperature at 50 percent 
evaporated shall be 158 degrees F. (70 
dearees C.) as determined b\ AS TM Test 
Method D-86; 

(5) The minimum lead content for 
gasoline/oxygenate blends registered 
and or labeled as "leaded" or "regular" 
shall be as defined in Rule .0102(10) of 
this Chapter; r . hall conlain Ht+4- k'-r-, than 
0-0^ gram - 1 k^ pt^ l-ri^r gcillon UmU 
grani 'i k«4 pt* IiIlt); 

(6) Octane rating shall not be less than the 
octane index certified on the brand name 
registration as required bv 2 NC/\C 42 
.0500; 

(7) Oxygenate Content. 

(A) Gasohol and leaded gasohol shall con- 
tain 10 plus minus 0.5 volume percent 
denatured fuel ethanol. 

(B) Gasolinc-oxN'genate blends not other- 
wise defmed in this Chapter, may contain, 
maximum or minimum as appropriate, 
the percentage and type of oxygenates as 
certified on the brand name registration 
as required by 2 NCAC 42 .0500. subject 
to compliance with other specifications as 
pro\ided in this Subparagraph; 

(8) Water tolerance shall be such that no 
phase separation occurs when subjected 
to a temperature equal to the temper- 
atures specified in fable 4, AS IM 
D-4814. 

(c) The Board hercbv adopts b\' reference in 
accordance with G.S. 150B- 14(c), AST.M D-975. 
"Standard Specification for Diesel Fuel Oils" as 
standard specification for diesel motor fuels with 
the following modification: For diesel motor fuel 
CTade 2-D, the minimum fiash point as deter- 
mined by ASTM Test Method D-56 shall be 115 
degrees F. (46 degrees C). 

(d) I he Board herebv adopts bv reference in 
accordance with CJ.S. 150B-14(ci. ASF.M D-306. 
"Standard Specification for Fuel Oils" as stand- 
ard specification for fuel oils. 



(e) I'he Board hereby adopts by reference in 
accordance with G.S. 150B-14(e), AS'FM 
D-3699, "Standard Specification for Kerosene" 
as standard specification for kerosenes with the 
following modification; For grade 2-K, the 
presence or absence of coloring matter shall in 
no way be determinative of whether a substance 
meets the requirements of this grade of kerosene. 

(f) In addition to meeting aU specification re- 
quirements as set forth in this Rule, each fuel 
must be suitable for the intended use. 

(g) ASTM documents adopted by reference 
herein are available for inspection in the Office 
of the Director of the Standards Division and 
may be obtained at a cost as determined b\' the 
publisher bv contacting ASF.M, 1916 Race 
Street, Philadelphia, PA^1910.V 

Statutoiy Aullwriiy G.S. 119-26: I50B-I4. 

rn LK lit - DKPARTMKM OF HUMAN 
RESOURCES 



1\ oticc is herebv given in accordance with G.S. 
I50B-I2 that the Commi.<:sion for Health Senices 
intcnd.'i to amend nilelsl cited a.v /O \C.4C 7.4 
.0209: SD .0801. .1105: IOC .0205. .0209: lOD 
.1615. .1635, .1637 - .1638: /OF .000/ - .0002. 
.0030. .0032. .0034. .0039 - .0040. .0042: /OG 
.0902. .0904. .0905, .090''. .0908. .0909. .09/2: 
adopt rule(s) cited as 10 NCAC 7 A .0303: SB 
.07/5 - .072/: /OA .03/9: repeal rulc(s) cited as 
/O \CAC 8B .070/ -.07/4. 



J he proposed effective dates of t/iese action are 
./line /. /990 andJuly /. 1990. 

1 he public hearing will be conducted at / :30 
p.m. on Febnuvy 21. /990 at .-irchdale Building, 
//earing Room (Ground Floor). 5/2 .\orth 
Salisbu/y Street, Ralcig/i, \orth Carolina. 

C omment Procedures: .{ny person may request 
information or copies of t/ie proposed ndes by 
writing or calling Jo/in P. Barkley. .Agency Legal 
Specialist. Department of Emironment. Health, 
and Xatural Resources. P.O. Bo.x 276S7. Raleigh. 
\orlh Carolina 2'y6//-76S7. (9/9) 733-724^. 
Written comments on these rule changes may be 
sent to \/r. Bar/dev at the above address. Written 
and oral commetits i no more than ten minutes for 
oral comments J on these nde changes may be 
presented at the public /tearing, \otice s/iould be 
given to .Mr. Barkley at least three days prior to 
the public hearing if you desire to speak. 



93.^ 



iSORTH CAROUSA REGISTER 



PROPOSED RULES 



CHAPIKR 7 - IIKALlll: KlMDEMrOLOGY 

SLBCHAPTKR 7A - ACUTE COMMUNICABLE 
DISEASE CON TKOU 

SECTION .0200 - CONTROL MEASU RES FOR 
COMMUNICAB! E DISEASES 

.0209 CONTROL MEASURES 

(d) The following are the control measures for 
the Acquired Immune Deficiency Syndrome 
(AIDS) and Human Immunodeficiency Virus 
(HIV) mfcction: 

(1) Infected persons shall: 

(A) refrain from sexual intercourse unless 
condoms are used; exercise caution when 
using condoms due to possible condom 
failure: 

( B) never share needles or syringes; 

(C) not donate or sell blood, plasma, 
platelets, other blood products, semen, 
ova, tissues, organs, or breast milk; 

(D) have a skin test for tuberculosis; 

(E) notify future sexual intercourse partners 
of the infection: if the time of initial in- 
fection is known, notify persons who have 
been sexual intercourse and needle part- 
ners since the date of infection; and, if the 
date of initial infection is unknown, notify 
persons who have been sexual intercourse 
and needle partners for the previous year. 

(F) upon request, disclose their HIV status 
to the attending physician or oral surgeon 
prior to receising care unohing the deliv- 
ery of newborns or surgical cnXry into tis- 
sues, body ca\ ities. or organs. 

Statuloiy Authority G.S. I30A-I44; I30A-I4S. 

SECTION .0300 - SPECIAU CONTROU 
MEASURES 

.0.^0.^ RECORDING THE SALES OI BIRDS 

(a) A business engaged in the retail sale of birds 
shaU maintain a record of each sale for at least 
six months after the sale. The record shall in- 
clude the name and address of the purchaser of 
each bird. The record shall be made a\ailable to 
the Department upon the request of the Depart- 
ment. 

(b) This rule shall not apply to the sale of birds 
for hunting, scientific, educational, agricultural 
or food purposes. 

Statutoiy Authority G.S. I30A-I44. 

CHAPIKR 8 - IIEALIH: PERSONAL IIEALI II 

SUBCHAPTER 8B - M.\TERNAL AND CHILD 
HEALTH 



SECTION .0700 - ADOLESCENT PREGNANCY: 
PREMATURITY AND PRE\ENTION PROJECT 



.0701 
.0702 
.0703 



.0704 
.0705 

.0706 

.0707 
.0708 
.0709 

.0710 

.0711 
.0712 
.0713 
.0714 



GENERAL (REPEALED) 
DEFINITIONS (REPEALED) 
ADOLESCENT PREGNANCY/ 
PREM.VTURITY PRE\ENTION 
ADVISORY BOARD (REPEALED) 
PROVIDER ELIGIBILITY (REPEALED) 
APPLICATIONS FOR FUNDS 
(REPEAUED) 

APPLICATION EVALUATION 
CRITERIA (REPEALED) 
SELECTION CRITERIA (REPEALED) 
USE OF PROGRAM FUNDS (REPEALED) 
BUDGETING OF GRANT FUNDS 
(REPEALED) 
E\.\LUATION AND 
MONITORING (REPEAUED) 
CUIENT ELIGIBILITY (REPEALED) 
CLIENT FEES (REPEALED) 
,\NNUAL REPORT (REPEALED) 
RENEWAL OF GRANT FUNDS 
(REPE.VLED) 



Statutoiy Authority S.L. J9S5, c. 479. s. 102. 

.0715 GENERAL 

The Adolescent Pregnancy Prevention Program 
shall be administered by the Disision of Maternal 
and Child Health, North Carolina Department 
of Pn\ironment, Health and Natural Resources, 
Post Office Box 27687, Raleigli, North Carolma, 
27611, (919) 733-7791. 

Statutoiy Authority S.L. I9S9. c. 752. s. 136. 

.0716 DEFINITIONS 

The following definitions shall apply through- 
out this Subchapter: 

( 1) "APPP" means the Adolescent Pregnancy 
Prevention Program administered by the 
Division of .Maternal and Child Health. 

(2) "Division of .MCH" means the Division 
of Maternal and Child Health. Depart- 
ment of Environment, Health and Natural 
Resources. 

(3) "Contractor" means a county or district 
health department or other public or pri- 
\ate agency recei\'ing APPP Project 
funds. 

(4) "Adolescent" means an)' individual 19 
years of age and under. 

(5) ".Major Equipment" means any fixed asset 
that has a unit cost of two thousand dol- 
lars ($2,000) or more. 

(6) ".Minor Remodeling" means any building 
or facility reconstruction project having a 
total cost of two thousand dollars ($2,000) 
or less. 



NORTH CAROLINA REGISTER 



934 



PROPOSED RULES 



Statutory Authority S.L. J9S9. c. 752, s. 136. 

.0717 GRANT rROI'OSALS 

(a) Grants shall be awarded through a request 
lor proposal (RFP) process that includes notifi- 
cation of potential applicant agencies of the el- 
igibility criteria and requirements for funding. 

(b) Grant proposals shall include infonnation 
specified in Chapter 752. Section 136, 1989 Ses- 
sion Laws, and other information required bv the 
Divisionof MCII in the RFP. 

Statutoiy Authority S.L. I9S9, c. 752. s. 136. 

.0718 MAXIMLM FLNDING LE\ EL 

The maximum level of funding for any one 
project in the first \"ear shall be si.\tv thousand 
dollars ($60,001)). 



Stdtuton Authority S.L. I9.S9. c. 



s. 136. 



.0719 OPERATING STAND.VRDS 

(a) L pen approval of a proposal for grant 
funds a budget shall be negotiated and a contract 
shall be siaied between the Contractor and the 
MCH Divfsion. 

(b) Project funds shall be used solely for the 
purposes detailed in the approved proposal and 
budget. Expenditures for equipment require 
prior .MCH Division approval. 

(c) Contractors shall not use .\PPP funds for 
purposes that are prohibited b\' statute, or for the 
following purposes: 

(1) purchase of inpatient care; 

(2) purchase or improvement of land: 

(3) purchase, construction, or permanent im- 
provement (other than minor remodeling) 
of any building or other facility; or 

(4) purchase of major equipment. 

(d| APPI' projects shall not impose charges on 
clients for services. 

(e) Staff qualifications, training, and experi- 
ences shall be appropriate for implementing 
project acti\ities. 

(f) Each project shall participate in region;il 
meetings with state staff and other project staff. 

(g) The start-up period before project acti\ities 
arc implemented shall not exceed six months. 

(h) Each project shall obtain approval from the 
MCH Division prior to making changes in pro- 
gram goals, objectives, and target populations 
during the Five Year Funding period. 

(i) Each project shall establish and implement 
a program review process on an ongoing basis. 

Statutoiy Authority S.L. I9S9. c. ^52. s. 136. 



.0720 EVALUAIION AND MONITORING 

(a) The Division of MCH shall make site re- 
views of Contractors to assess program perform- 
ance. 

(b) The Division of MCH shall make periodic 
site visits to contractors to provide technical as- 
sistance and consultation. 

(c) The Contractor shall submit in a format 
estabhshed by the Division of .MCH, a mid-year 
progress report and an annual report of each 
year, on a schedule to be determined by the Di- 
vision of .MCH. The report shall include an 
evaluation addressing progress in meeting the 
objectives outlined in the application. 

Statutory Authority S.L. I9S9, c. 752. s. 136. 

.0721 RENE\V.\L OF GR.VNT FUNDS 

(a) Contracts for APPP projects are subject to 
annual renewal for a 5 year period based upon 
the criteria stated in these rules and contingent 
upon the availability of funds for this purpose. 

(b) .'\ contractor that violates any of the pro- 
visions of these rules may have .APPP funding 
reduced or discontinued. The fmal decision to 
reduce or discontinue funding shall be made by 
the Commission for Health Sen,'ices. 

Statutoiy Authority S.L. I9S9. c. ~52. s. 136. 

SI IK IIAPIEK 8D - ( nil DREN'S SPECIAL 

HEAL III SERMCES: DE\ ELOPMENTAL 

DISAIJILITIES BRANCH 

SECIION .0800 - ADOITION 

.0801 (.ENERAL PROMSION 

(a) A child with a supported medical condition, 
confirmed by a Cliildren's Special Health Ser- 
vices rostered physician, is eligible for program 
support after adoption v i ithout mooting A# fi- 
nancial eligibility roiiiiiroinont ' . . t4 -W NCAC AQ 
if the conditions of this Section are met. 

Statutoiy .Authority G.S. I30A-I24. 

SECTION .1 100 - NORlll CAROLINA 
IIEMOPIIII.LV ASSLSIANCE PLAN 

.1105 SERMCES 

(a) I he following scr\ices shall be provided to 
patients eligible for assistance under NCH.AP: 

(1) provision of Factor Mil and Factor IX 
blood derivatives: and 

(2) provision of dental care, diagnostic studies. 
drugs, physical therapy, psychiatric or 
psychosocial care, prosthetics or orthotics. 
and cost of transportation in obtaining 
this care. 



935 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(b) The individual per patient allocation for 
sendees may not exceed the sum of Uv» thour . and 
6¥» hundred dollars (S2,500) three thousand 
seven hundred hftv dollars (S3.75().()()) per state 
fiscal year. 

Statutory- Authority G.S. I30A-I24. 

CHAPTER 10 - MKALTII: ENVIRONMENTAL 
HEALTH 

SLBCHAPTER lOA - SANITATION 

SECTION .0300 - SANITATION OF LODGING 
PLACES 

.0319 FOODSERVICE 

Food preparation or food service acti\ities shall 
meet the requirements of 10 NCAC lOA .0400, 
"Rules Governing the Sanitation of Restaurants 
and Other Foodhandling F.stablishments." 

Statuton- Authority G. S. I30A-24S. 

SLBCHAPTER IOC - SOLID WASTE AND 
VECTOR CONTROL 

SECTION .0200 - S FATE AID FOR MOSQLITO 
CONFROL 

.0205 AGREEMENTS 

(b) The applicant w+tt shall assume the follow- 
ing obligations in any agreement: 

(6) to submit an accounting of expenditures 
quarterly on forms supplied by the De- 
partment of Human RciourcoG. I^ivi '. ion 
e4^ ll e allh SL'P i icor . . The accounting of 
expenditures for the fourth quarter shall 
be due no later than 5 p.m. on .lune 15. 
Such accounting s shall mcludc an item- 
ized account of expenditures of both local 
and state funds, as well as an itemized ac- 
count of other assets and facilities that 
have been utilized to earn,' out the 
mosquito control program. Such other 
supporting documents as may be required 
by the Department tvf Human RcnHUircc!' . , 
Disi ^. ion t+f Health Sorvicoo, shaU be in- 
cluded in the accountini'. 



Statutory Authority G.S. I30A-347. 

.0209 Al IHORI/.FD CHANGES IN 
AFI.OCAIIONS 

(c) \J_ an\' state aid allocated to a local program 
has not been claimed b\ the local program bv 
■lune 1 5 oj^ the fiscal \ear. the Department mav 
aulomalicalK rcmo\e the lands from the local 
program s budget. 



Statutory Authority G.S. J30A-347. 

SLBCHAPTER lOD - WATER SUPPLIES 

SECTION .1600 - WATER QUALITY 
STANDARDS 

.1615 MAXIMUM CONTAMINANT LEVELS 
FOR ORGANIC CHEMICALS 

The following are the maximum contaminant 
levels for organic chemicals. The maximum 
contaminant levels for organic chemicals in (I) 
and (2) of this Rule apply to all community wa- 
ter systems. Compliance with the maximum 
contaminant levels in (1) and (2) is calculated 
pursuant to 10 NCAC lOD .1624. The maxi- 
mum contaminant level for total triJialomethancs 
in (3) of tliis Rule applies »«i¥ to all community 
water systems and non-transient, non- 
community water s\stems sv ' hich ' jL ' nc » popu 
kit ion H+' 10.000 ef moro individuak . a«4 which 
add a disinfectant (oxidant) to the water in any 
part of the drinking water treatment process. 
Compkance with the maximum contaminant 
level for total trilialomcthanes is calculated pur- 
suant to 10 NCAC lOD .1635. 

I evcl, milligrams 
per liter 

(1) Chlorinated hydrocarbons: 
Endrin (1,2,3,4,10, 

10-hexachloro- 0.0002 

6,7,-epoxv-l,4. 

4a, 5,6,7, 8.Sa-octa- 

h}dro-l,4-cndo, 

endo-5,8 - dimethano 

naphthalene). 

Lindane (1,2,3,4,5, 

6-hexacliloro- 0.004 

c\clohe.xane, gamma 

isomer). 

MethoxvcWor (1,1, 

l-Tricmoro-2,2 0.1 

- bis (p-methoxy- 

phen\r) ethane). 

Toxaphene |C( 10)11 

(10)C1(8) Technical 0.005 

clilorinatcd camphene, 

67-69 percent chlorine]. 

(2) Chloropheno.xN's: 
2,4,D, (2,4-Diclilaro- 
phcnoxyacetic O.l 
acid). 

2.4,5- IP Silvex 

(2,4,5-Tnchloro 0.01 

phenoxypropionic acid). 

(3) Total trihalomethanes 

[the sum of the concentrations 
of bromodichloromethane, 
dibromocliloromethane. 



NORTH CAROLINA RECLSTER 



9.U 



PROPOSED RULES 



tribromomcthane 0.10 

(bromiifbrm) and trichloromcthane 
(chloroform)!. 

Authority G.S. I30A-3I5; P.L. 93-523; 40 C.F.R. 
141. 

.1635 roi AL rRIIIALOMETHANES 
SAMPLING AMJ ANA[.>S1S 

(a) Community water systems w'hich ! . or . L ' a 
population f4 10,000 t+f mor e indi' i idualK . and 
non-transient, non-communitv water systems 
which add a disintectant (o.xidant) to the water 
in any part of the drinking water treatment 
process shall analyze for total trifialomethanes 
(TTHMs) in accordance with this Rule. I'or 
systems serving 75,000 or more individuals, sam- 
pling and analx'ses shall begin not later than No- 
vember 29. l^SO. For systems ser\ing 10,000 to 
74.999 individuals, sampling and analyses shall 
begin not later than November 29, 1982. For 
sNstems ser\ing less than 10.0f)0 indi\iduals. 
sampling and anah sis shall bc'jn not later than 
the quarter beginning .lanuar\ _L l')'^2. lor the 
puipose of this Rule, the minimum number of 
samples rec]uired to be taken b>' the system shall 
be based on the number of treatment plants used 
by the system, except that multiple wells drawing 
raw water from a single aquifer may, with De- 
partment approval, be considered one treatment 
plant for determining the minimum number of 
samples. All samples taken within an established 
frec]uency shaU be collected within a 24 hour pe- 
riod. 

(b) I'or all community water systems and 
non-transR-nt. non-c(Mnmunit\' water sNstems 
utilizmg suiiace water sources in whole or in part. 
and for all community water systems and non- 
transient. non-c(Mnmunit\' s\ stems utilizing only 
ground water sources that ha\e not been deter- 
mined by the Department to qualify for the 
monitoring requirements of (cj of tliis Rule, an- 
alyses for I'll IMs shall be made as follows: 

(1) Anahses shall be performed at quarterly 
inten'als on at least four water samples for 
each treatment plant used by the s\stem. 
At least 25 percent of the samples shall 
be taken at locations within the distnb- 
ution system reflecting the maximum res- 
idence time of the water in the s\stem. 
The remaining 75 percent shall he taken 
at representative locations in the distrib- 
ution system, taking into account number 
of persons ser\cd. different sources of wa- 
ter and different treatment methods em- 
ployed. The results of all analsses per 
cjuarter shall be arithmcticaUy a\'craged 
and reported to the Department within 30 



days of the system's receipt of such re- 
sults. All samples collected shall be used 
in the computation of the average, unless 
the analytical results are invalidated for 
technical reasons. Sampling and analyses 
shall be conducted in accordance with the 
methods listed in (e) of this Rule. 

(2) Upon the wntten request of a community 
water system, the monitoring frequency 
required by (b)(1) of this Rule may be 
reduced by the Department to a minimum 
of one sample analyzed for irilMs per 
quarter taken at a point in the distribution 
system retlecting the ma.ximum residence 
time of the water in the system, upon a 
written determination by the Department 
that the data from at least one year of 
monitoring in accordance with (h)(r) of 
this Rule and local conditions demon- 
strate that total trihalomethane concen- 
trations will be consistently below the 
maximum contaminant level. 

(3) If at an\ time during which the reduced 
monitoring frequency prescribed under 
this Paragraph applies, the results from 
any analysis exceed 0.1.0 mg/'l of TTHMs 
and such results are confirmed by at least 
one check sample taken promptly after 
such results are recei\ed, or if the system 
makes any significant change to its source 
of water or treatment program, the system 
shall immediately begin monitoring in ac- 
cordance with the requirements of (b)(1) 
of this Rule, which monitoring shall con- 
tinue for at least one year before the fre- 
quency may be reduced again. At the 
option of the Department, a s_\stem's 
monitoring frequency may and should be 
increased above the minimum in those 
cases where it is necessarv' to detect \ari- 
ations of 1 TlIM le\els within the distrib- 
ution system. 

(c) Upon written request to the Department, a 
community water system or a non-transient. 
iKMi-communitv water s\'stem utilizing only 
giound water sources may seek to have the 
monitoring fretjuency required by (b)(r) of this 
Rule reduced as follows; 

(1) There shall be a minimum of one sample 
for maximum 11 IIM potential per \ear 
for each treatment plant used by the sys- 
tem taken at a point in the distribution 
system reflecting maximum residence time 
of the water in the s\ stem. The system 
shall submit to the Department the results 
of at least one sample analyzed for maxi- 
mum TTIIM potential for each treatment 
plant used by the system taken at a point 



9i7 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



in the distribution system reflecting the 
maximum residence time of the water in 
the system. The system's monitoring fre- 
quency may only be reduced upon a 
written determination by the Department 
that, based upon the data submitted by 
the system, the system has a maximum 
TTIIM potential of less than 0.10 mg/1 
and that, based upon an assessment of the 
local conditions of the system, the s\ stem 
is not likely to approach or exceed the 
maximum contaminant level for total 
1 I HMs. The results of all analyses shall 
be reported to the Department within 30 
days of the system's receipt of such re- 
sults. All samples collected shall be used 
for determining whether the system must 
comply with the monitoring requirements 
of (b) of this Rule, unless the analytical 
results are invalidated for technical rea- 
sons. Sampling and analyses shall be 
conducted in accordance with the meth- 
ods listed in (e) of this Rule. 
(2) If at any time during which the reduced 
monitoring frequency prescribed under 
(c)( 1) of this Rule applies, the results from 
any analysis taken by the system for 
maximum IIIIM potential are equal to 
or greater than 0.10 mg 1, and such results 
are confirmed by at least one check sam- 
ple taken promptly after such results are 
received, the s\stem shall immediately be- 
gin monitoring in accordance with the re- 
quirements of (b) of this Rule and such 
monitoring shall continue for at least one 
year before the frequency may be reduced 
again. In the event of any significant 
change to the system's raw water or treat- 
ment program, the s\slem shall imme- 
diately analyze an additional sample for 
maximum I IIIM potential taken at a 
point in the distribution s\stem reflecting 
maximum residence time of the water in 
the system for the purpose of determining 
whether the s\stcm must comply with the 
monitoring requirements of (b) of tliis 
Rule. /\t the option of the Department, 
monitoring frequencies may and should 
be increased abo\e the minimum in those 
cases where this is necessary to detect 
variation of 1 1 II\1 le\els within the dis- 
tribution svstem. 
(d) Compliance with 10 NCAC lOD .1615(3) 
shall be determined based on a running amiual 
a\erage of quarterly samples collected by the 
system as prescribed in (b)(1) or (2) of this Rule. 
If the average of samples covering any 12 month 
period exceeds the maximum contaminant level. 



the supplier of water shall report to the Depart- 
ment pursuant to 10 NCAC lOD .1631 and no- 
tify the public pursuant to 10 NCAC lOD .1633. 
.\lonitonng after public notification shall be at a 
frequency designated by the Department and 
shall continue until a monitoring schedule as a 
condition to a variance, exemption or enforce- 
ment action shall become efTective. 

(e) Sampling and analyses made pursuant to 
this Section shall be conducted by one of the 
following 1:P,\ approved methods: 

(1) "The Analysis of Trihalomethanes in 
Drinking Waters by the Purge and Trap 
Method," Method 501.1, Environmental 
Monitoring and Support I aboratory, 
ERA Cincinnati, Ohio. 

(2) "The Analysis of Trihalomethanes in 
Drinking Water bv Liquid I iquid Ex- 
traction," Method 501.2, Environmental 
Monitoring and Support I. aboratory, 
ITW Cincinnati. Ohio. 

Samples for T'l IIM shall be dechlorinated upon 
collection to prevent further production of 
trihalomethanes, according to the procedures de- 
scribed in the methods in (1) and (2) of this 
Subparagraph. Samples for maximum ITILM 
potential should not be dechlorinated, and 
should be held for seven days at 25" C or above 
prior to analysis, according to the procedures 
described in the methods in (1) and (2) of this 
Subparagraph. 

(f) Before a community water system or a 
n(m-transient, non-community water svstem 
makes any significant modifications to its existing 
treatment process for the purposes of achievini^ 
compliance with 10 NCAC lOD .1615(3), such 
system must submit and obtain Department ap- 
proval of a detailed plan setting forth its pro- 
posed modification and those safeguards that it 
will implement to ensure that the bacteriological 
quality of the drinking water served by such sys- 
tem will not be adversely affected by such mod- 
ification. I'ach system shall complv with the 
provisions set forth in the Department approved 
plan. At a minimum, a Department approved 
plan shall require the system modifying its dism- 
fection practice to: 

(1) Evaluate the water svstem for sanitary de- 
fects and evaluate the source water for bi- 
ological quaUty; 

(2) Evaluate its existing treatment practices 
and consider improvements that v\ill 
minimize disinfectant demand and opti- 
mize fLnished water qualitv throughout 
the distribution system: 

(3) Provide baseline water quality sun.'e\ data 
of the distribution svstem. Such data 
should include the results from momtor- 



NORTH CAROLINA REGISTER 



9Mi 



PROPOSED RULES 



ing for colitorm and fecal colLform bacte- 
ria, fecal streptococci, standard plate 
counts at 35° C and 20' C, phosphate, 
ammonia nitrogen and total organic car- 
bon. \'irus studies should be required 
where source waters are hea\ily contam- 
inated with sewage effluent; 

(4) Conduct additional monitoring to assure 
continued maintenance of optimal bi- 
ological quality in fmished water, for ex- 
ample, when chloramines are introduced 
as disinfectants or when pre-chlorination 
is being discontinued. Additional moni- 
toring should also be required by the De- 
partment for chlorate, chlorite and 
chlorine dioxide when chlorine dioxide is 
used as a disinfectant. Standard plate 
count analyses should also be required b_\ 
the Department as appropriate before and 
after any modifications: 

(5) Consider inclusion in the plan of pro- 
visions to maintain an acti\'e disinfectant 
residual througliout the distribution sys- 
tem at all times during and after the 
modification. 

(ii) The maximum contaminant le\els for 
tnhalomethanes set forth in 10 NCAC lOD .1615 
shall take effect No\"ember 29, 19S1 for commu- 
nity water systems ser\ing 75,000 or more indi- 
\iduals. and No\ember 29. 1983 for community 
water systems ser\ing 10.000 to 74,999 indi\id- 
uals. The maximum contaminant le\'els for 
trihalomethanes set forth in III NC.AC lOD .1M5 
tor a comniumt\ water s\stem or a non-transient. 



non-communit\ water s\ stem ser^ini: less than 
in. 01 10 shall take etfect one \ear from the date 
that the s\ stem betiins quarterly sampling. 



Authoniy G.S. I30A-3I5: PL. 93-523: 40 CFR 
141. 

.1637 TRF ATMKNTTF.rHMQI TS FOR 
rolAI IKIHAFOMFI IIANFS 

(b) .A communitN' water system or a non- 
transient, non-communitv water svstem shall in- 
stall and or use any treatment method identified 
in Paragraph (a) of this Rule as a condition for 
granting a %ariance unless the Secretan.' deter- 
mines that such treatment method is not avail- 
able and effectixe for TI HM control for the 
system. .\ treatment method shall not be con- 
sidered to be "a\'ailable and effecti\e" for an in- 
dividual system if the treatment method would 
not be technically appropriate and teclinicall_\' 
feasible for that s\"stem or would only result in a 
marginal reduction in T'l'lIM for the system. If 
upon application by a system for a variance, the 
Secretan' determines that none of the treatment 



methods identified in Paragraph (a) of this Rule 
IS a\ailable and effective for the system, that sys- 
tem shall be entitled to a variance under the 
provisions of 10 NCAC lOD .2500. The Secre- 
tar\''s determination as to the a\ailability and ef- 
fecti\'eness of such treatment methods shall be 
based upon studies by the system and other rele- 
\ant information. If a system submits informa- 
tion intending to demonstrate that a treatment 
method is not available and effecti\'e for TTIIM 
control for that system, the Secretary shall make 
a fmding whether this information supports a 
decision that such treatment method is not 
a\ailable and effective for that system before re- 
quiring installation and or use of such treatment 
method. 

.{lahoriiv G.S. 130.1-3/ 5: P. L. 93-523: 40 C.F.R. 
141. 

.16,18 SPF.CIAL MOMTORING FOR 
ORGANIC ClIFMK Al.S 

f++ rV ' . vatt ' r '' UppJK ' r fi-^f a community ' . vat i^ r 
■■ ] . ■■ t c- m t-H^ non IraiT ' K ' nl. nim umimunitv vsater 
•• \ '' tL ' tn ;.e p . ing l e i i V c r than 44<4 hLTMCL ' con 
noctioni . ma>" compl> v . ith tbit- Rule ^- [ ^ ending 
rt k'ttor k* Ar^ dopurtmont '' tLiting t+Hri- i4^ •■ > '. t t' m 
K a'niikibl e ti-kf L ' CimpLing- 4+h* ' i vati. ' r ' .aipplier 
■■ hull »-4 '' L - nd ■■ ampk". ' t+* t-t+e DL ' piiilniL ' nt unlL ' Sf . 
ruquo 'i led k+ 4o ^.o- t»v \U^ D e panm e nt. lliio 

1 . . < ♦ . tT- . \-t -ill 1^^ ^-^xi^t i ■ -t t V~i . k ^tjjt^ n f\ l^t^^t ♦ Vi --1 T-i I o T-i 

H^rtv 4t 4-iitti. 

(il (-J4 -Ml communitN" and non-transient, non- 
commumty water systems shall repeat the moni- 
toring no less frequently than e\"er>" fi\e years 
from the dates specified in Paraszraph (a) of this 
Rule. 

(j) (4^ The Department or a water supplier may 
composite up to fi\e samples when monitonng 
for substances in (d) and (h) of this Rule. 

.Unhoriiv G.S. I30.i-3J5: P.L. 93-523: 40 C.F.R. 
I4F 

SI IK H.Vl'lFR lOF - II \/ARnOi;S \\ .\S FF 
MANA(.FMFM 

.0001 GENERAL 

(a) The purpose of this Subchapter is to es- 
tablish minimum State standards for hazardous 
waste management applicable to generators, 
transporters, owners, and operators of ftcilities 
which treat, store, incinerate or dispose hazard- 
ous waste. 

(b| Ihe Hazardous Waste Branch Section of 
the Division ef Ik'allh Sl ' p . icL'o Solid Waste 
■ManaLicmenl Dixi^ion sh.ill administer the haz- 
ardous waste management program tor the State 
of North CaroUna. 



939 



.\ORTH CAROLLX.i REGISTER 



PROPOSED RULES 



(c) 40 CI'R 260.1 to 260.3 (Subpart A), 
"General," has been adopted by reference in ac- 
cordance with G.S. 150B- 14(c). 

(d) Copies of all material adopted by reference 
in this Subchapter may be inspected in the 
Branch Section Office, 401 Oberlin Road, P.O. 
Box imh 27687, Raleigh, N.C. 27602. 27611. 
Copies may be obtained from the Brunch Section 
at the actual cost to the Branch. Section. 

(e) The "References" contained in 40 CFR 
260. 1 1 have been adopted by reference in ac- 
cordance with G.S. 1 SOB- 14(c). 

(f) This Rule shall apply throutihout this Sub- 
chapter except that: 

( 1) "Department of Environment. Health, and 
Natural Resources" shall be substituted 
for "l'"n\ironmental Protection Aiiency" 
and " Secret ar\' of the Department of F,n- 
vironment. Health, and Natural Re- 
sources" shall be substituted for 
".Administrator". "Regional .\dministra- 



tor ' and "Director", except m those situ- 
ations where authont\' has not been 
delegated to the Slate of Noilh Carolina 
(e.g., international shipments) or unless 
the context requires a different meaning. 
(2) "Section" shall be the Hazardous Waste 
Section in the Solid Waste Management 
Division. 



(3) The 'IX'partment" shall be the Depart- 
ment of lm\ironment. Health, and Na- 
tural Resources (DIUNR). 

(4) "Division" shall be the Solid Waste Man- 
agement Divisicm (SWMD). 

Statutoiy Aut/iorily G.S. l30A-294(c). 

.0002 DEFINITIONS 

(a) The definitions contained in 40 CPR 260. 10 
(Subpart B), 40 CPR 270.2) and 40 CPR 124.2 
have been adopted by reference in accordance 
with G.S. 150B- 14(c). 

(b) This Rule shall apply throughout this 
Subchapter except that: 

{Vf "DepailmL ' nt (4 Human R e-. ouix e;. " ;. hall 
be liub ii tituted fof "P;nsironint ' ntal Pro 
toction Ag e ncy" rH+4 "Sl'lioIcu';! ' t+f t4*e 
D e part mt ' nt t+t- 1 luman R e'. ourc e r i ' i i hall 
be !. ub ' jtilutud fs* "i\tlmini '. lnitor". 'R e 
gionul i\dmini i , . trator" ri#H4 "Ijiructor", 
except ift thoi ' t ' tutuutionij Vihorc authority 
hrttr ftfvt- beeft dek ' gati ' d k+ (-be State f4" 
North Carolina fevgr inl e inalional ! i hip 
mL ' nt '. ) 8+ unit ';.;, t+te conlL ' .vt require - ; , a 
dilferL ' nt meaning. 

Qi (^ 40 CP'R 124.2(c) shall not be adopted 
bv reference. 



(2) f^ "Landfill" means a disposal facility or 
part of a disposal facility where waste is 
placed in or on land and which is not a 
land treatment facility, a surface 
impoundment, an injection well, a haz- 
ardous waste long-term storage facility or 
a surface storage facility. 

(4) "Branch" f . hall be Ae Haaardous Wa ^i l e 
Brunch m t4*e Solid Wunte Management 
Section. 
(c) The following definitions shall apply 
throughout this Subchapter: 

(1) "Hazardous waste disposal facility" means 
any facility or any portion of a facility for 
disposal of hazardous waste on or in land 
in accc^rdance with rules adopted under 
this Article. 



w 



m 



^ 



"Comprohenr . i' i o hai'.ardou ' i wu -. te tr e at 
ment facility" meanr . a facility dt ' j . ignat e d 
a* f . uch by the Goomorr . Wa i ite Man 
agement Board, meeting Ae folhnsing 
criteria: it- i* a commercial facility tbat- ae- 
oopto hui'.urdouF i w;i ;. t e from t4*e general 
public fof tr e atment; it- ha* the capacity 
aft4 capability te- tr e at afni di i ipor . e Bi 
haj'.urdouc ' . ' . u i L . t e e« at l e ar . t a» intruLUute, 
rogionul bar . ic; aft4 its location v414 i i ub 
C r tuntially facilitnto treatment Bi haF.urdouo 
wat . te fof tbe State (*f North Carolina. 
"Hui'.urdoufi ' ■ ' ■ aiite long term otonige fucil 
i+y^ meanr . any- facility e* afty portion (4 

(*f tbe r e'. idual ' i »f the treatment ef haa 
urdtuir . ' . sa t. t e . en+ e<^ i«- land. 

"1 ong term retri e sdble i . toruge" meunii 
r . toruge i«- clof' . ed container * ^ m facilities 



( e ither above e* below ground) v . ilh: 
fA-^ adequat e light '. , 
(444 impers iou ' i cement floors, 
fP) strong vi 'i ible sheb i 'es (+f platfoims. 
(4-^ pussagessiiys te- alio' . ' . ' inspeclion at a«¥ 

time, 
(+4 adequate ' . entiliition it" underground ef 

ift- closed btiildings. 
fl-^ protection from the \' i' eather, 
(4+^ ucce '. r . ible tt* monitoring v i 'ith r . igns h«- 

both indis iduul containers a«4 sections ef 

storage facilities. »fi4 
(4-14 adec|uate safety aft4 security prec 

uutionr . fevf facility p e r -. onnel. inspectors 

aftd incit e d Bf permitted members t4 the 

community. 
(2) f4^ "Re-use" means a process by which 

resources arc reused or rendered usable. 

Slatuuny Authority G.S. I30A-294{c}. 



NORTH CAROLINA REGISTER 



940 



PROPOSED RULES 



AWM) SIANDARDS FOR IIA/.AKDOl S WAS IK 
GKNKKA rOKS - PART 262 

(e) The pro\isions for "Special Conditions" 
contained in 40 CFR 262.50 rtfi4 to 262.58 
(Subpart E) have been adopted by reference in 
accordance with G.S. 150B- 14(c). 

Sumnoiy Aiuhoriiy G.S. I30.{-294(c). 

.0032 S rANDARDS FOR OWNFRS/ 

OPKRATORS OF IIWMF'S - PART 264 

(i) " Financial Requirements'" contained in 40 
CFR 264.140 to 264.151 (Subpart IF) have been 
adopted bv reference in accordance with G.S. 
150B- 14(c), except that 40 CFR 264.143(a)(3), 
(a)(4), (a)(5), (a)(6), 40 CFR 264.145(a)(3), 
(a)(4), (a)f5), (a)(6), and 40 CFR 264.151(a)(1), 
Section 15, »«4 4« Qf^ 261.151(h). are not 
adopted b\" reference. The remaining material in 
I'arairraph (il of this Rule is deleted. 

Fhe following shall be substituted for the pro- 
visions of 40 CFR 264.151(h) which are not 
adopted b_\' reference. 

(h) A corporate guarantee, as specified in 
Sections 264.143(0 or 264.145(0 or Sections 
265.143(e) or 265.145(e) of this Chapter, must 
be worded as follows, except that instructions in 
brackets are to be replaced with the rele\'ant m- 
fomiation and the brackets deleted: 

CORPOR,ATC GUAR WriT FOR CI OSL RE 
OR POST-CI OSL RF C\RF 

Guarantee made this |date| b\ (name of guar- 
anteeing entity], a business corporation organized 
under the laws of the State of [insert name of 
State] . herein referred to as guarantor, to the De- 
partment of Fn\ironment, Health, and Natural 
Resources (DLHINR), obligee, on behalf of our 
subsidian," ]owner or operator] of [business 
address], 

(Note: .Ml requirements in this document refer- 
enced as 40 CFR 264 ha\e been adopted in 
North Carolina as 10 NC.AC lOF .0032, and all 
requirements referenced as 40 CFR 265 have 
been adopted in North Carolina as 10 NCAC 
lOF .0033.] 

Recitals 

1. Guarantor meets or exceeds the financial 
test criteria and agrees to comply with the 
report inc requirements for guarantors as 
specilied' m 40 CFR^ 264.143(0, 
264.145(0. 265.143(e), and 2f>5. 145(e). 

2. lOwner or operator] owns or operates the 
foUowins hazardous waste management 



facility (ies) co\ered by this guarantee: 
[Fist for each facility: FPA Identification 
Number, name, and address. Indicate for 
each whether guarantee is for closure, 
post-closure care, or both.] 

3. "Closure plans" and "post-closure plans" 
as used below refer to the plans main- 
tained as required by Subpart G of 40 
CFR Parts 264 and 265 for the closure 
and post-closure care of facilities as iden- 
tified abo\e. 

4. For \'alue received from Jowner or 
operator), guarantor guarantees to 
DFHNR that in the e\ent that ]owner or 
operator] fails to perform [insert 
"closure," "post-closure care" or "closure 
and post-closure care"] of the above 
facility(ies) in accordance with the closure 
or post-closure plans and other permit or 
interim status requirements whenever re- 
quired to do so, the guarantor shall do so 
or establish a trust fund as specified in 
Subpart II of 40 CFR Parts 264 or 265, 
as applicable, in the name of ]owner or 
operator] in the amount of the current 
closure or post-closure cost estimates as 
specified in Subpart II of 40 CFR Parts 
264 and 265. 

5. Guarantor agrees that il', at the end of any 
fiscal \ear before tennination of this 
guarantee, the guarantor fails to meet the 
financial test criteria, guarantor shall send 
within 90 days, by certified mail, notice to 
DFIINR and to [owner or operator] that 
he intends to pro\ide alternate financial 
assurance as specified in Subpart 1 1 of 40 
CFR Parts 264 or 265. as apphcable. in 
the name of [owner or operator]. Within 
120 days after the end of such fiscal year, 
the guarantor shall establish such financial 
assurance unless ]owner or operator] has 
done so, 

6. Fhe guarantor agrees to notif\ DFIINR 
by certified mail, of a \oluntar\" or in\ol- 
untar\" proceeding under Fitlc 1 1 ( Bank- 
mptcy), F'.S. Code, naming guarantor as 
debtor, within 10 days after commence- 
ment of the proceeding. 

7. Guarantor agrees that uitliin 30 days after 
being notified b\' DITINR of a determi- 
nation that guarantor no longer meets the 
financial test criteria or that he is disal- 
lowed from continuing as a guarantor of 
closure or post-closure care, he shall es- 
tablish alternate financial assurance as 
specified in Subpart II of 40 CFR Parts 
264 or 265, as appUcable, in the name of 



y^/ 



\ORTH C.AROLLVA REGISTER 



PROPOSED RULES 



[owner or operator] unless [owner or 
operator] has done so. 

8. Guarantor agrees to remain bound under 
this guarantee notwithstanding any or all 
of the following: amendment or modifica- 
tion of the closure or post-closure plan, 
amendment or modification of the permit, 
the extension or reduction of the time of 
performance of closure or post-closure, 
or any other modification or alteration of 
an obhgation of the owner or operator 
pursuant to 40 CFR Parts 264 or 265. 

9. Guarantor agrees to remain bound under 
this guarantee for so long as [owner or 
operator] must comply with the appUcable 
financial assurance requirements of Sub- 
part 11 of 40 CFR Parts 264 and 265 for 
the abo\'e-listed facilities, except that 
guarantor may cancel this guarantee by 
sending notice by ceilificd mail to 
DFHNR and to [owner or operator], such 
canccUation to become effective no earlier 
than 120 days after receipt of such notice 
by both DlillNR and [owner or 
operator], as evidenced by the return re- 
ceipts. 

10. Guarantor agrees that if [owner or 
operator] fails to pro\ide alternate finan- 
cial assurance as specified m Subpart H 
of 40 CFR Parts 264 or 265, as applicable, 
and obtain written approval of such as- 
surance from DFIINR within 90 days af- 
ter a notice of cancellation by the 
guarantor is received by DI:IINR from 
guarantor, guarantor shall provide such 
alternate financial assurance in the name 
of [owner or operator], 

11. Guarantor expressly waives notice of ac- 
ceptance of this guarantee by DEHNR or 
by [owner or operator|. Guarantor also 
expressly waives notice of amendments or 
modification of the closure and or post- 
closure plan and of amendments or mod- 
ifications of the facilit>^ pennit(s). 

I hereby certify that the wording of this guar- 
antee is identical to the wording specified in Sec- 
tion 264.151(h) of 10 NCAC lOF .0032(i) as such 
regulations were constituted on the date first 
above written. 

Effective date: 

[Name of guarantor] 

[.Authorized signature for guarantor[ 

[Name of person signing] 

[Title of person signing] 

Signature of witness or notary: 



(1) The following shall be substituted for the 
provisions of 40 CFR 264.143(a)(3) which 
were not adopted by reference: 

"The owner or operator must deposit the 
full amount of the closure cost estimate 
at the time the fund is established. Within 
1 year of the effective date of these regu- 
lations, an owner or operator using a clo- 
sure trust fund established prior to the 
effective date of these regulations shall 
deposit an amount into the fund so that 
its value after this deposit at least equals 
the amount of the current closure cost es- 
timate, or shall obtain other financial as- 
surance as specified in this section." 

(2) The following shall be substituted for the 
provisions of 40 CFR 264.43(a)(4) which 
were not adopted by reference: 
"Deleted" 

(3) The following shall be substituted for the 
provisions of 40 CFR 264.143(a)(5) wluch 
were not adopted by reference: 
"Deleted" 

(4) The following shall be substituted for the 
provisions of 40 CFR 264.143(a)(6) which 
were not adopted by reference: 

"After the trust fund is established, when- 
ever the current closure cost estimate 
changes, the owner or operator must 
compare the new estimate with the trus- 
tee's most recent annual \aluation of the 
trust fund. If the value of the fund is less 
than the amount of the new estimate, the 
owner or operator v\ithin 60 days after the 
change in the cost estimate, must either 
deposit an amount into the fund so that 
its value after this deposit at least equals 
the amount of the current closure cost es- 
timate, or obtain other financial assurance 
as specified in this section to cover the 
difference." 

(5) The following shall be substituted for the 
provisions of 40 CJ-R 264.145(a)(3) which 
were not adopted by reference: 

"The owner or operator must deposit the 
full amount of the post-closure cost esti- 
mate at the time the fund is established. 
Within 1 year of the effective date of these 
regulations, an owner or operator using a 
post-closure trust fund established prior 
to the effective date of these regulations 
shall deposit an amount into the fund so 
that its value after tins deposit at least 
equals the amount of the current post- 
closure cost estimate, or shall obtain other 
financial assurance as specified in this 
section." 



NORTH CAROLINA REGISTER 



942 



PROPOSED RULES 



(6) The following shall be substituted tor the 
pixnisions of 40 CI-R 264.145(a)(4) which 
were not adopted bv reference: 
"Deleted- 

(7) 'I'he following shall be substituted for the 
prosisions of 40 CFR 264.145(a)(5) which 
were not adopted b\" reference: 
'Deleted" 

(S| The following shall be substituted for the 
provisions of 40 CI-R 264.145(a)(6) which 
were not adopted by reference: 
"i\fter the trust fund is established, when- 
e\er the current post-closure cost estimate 
changes during the operating life of the 
facility, the owner or operator must com- 
pare the new estimate with the trustee's 
most recent annual \aluation o'i the trust 
tund. if the \alue of the fund is less than 
the amount oi the new estimate, the 
owner or operator, within 60 days after 
the change in the cost estimate, must ei- 
ther deposit an amount into the fund so 
that its value after this deposit at least 
equals the amount of the current post- 
closure cost estimate, or obtain other fi- 
nancial assurance as specified in this 
section to cover the dilTerence." 
{'^) The following shall be substituted io\- the 
pixnisions of 40 CFR 264.151(a)(1), Sec- 
tion 15. which were not adopted by refer- 
ence: 

"Section 15. Notice of Pa\ment. I he 
trustee shall notify the i4iA Regional 
j\dniini -. li\itor Secrclap> of Department 
of 1 inironment. I lealth. and Nat ur.il Re- 
sources ot pa\nient to the taist fund, by 
certified mail within ten da\"s following 
said pa\ment to the trust fund, i'he no- 
tice shall contain the name of the Grantor, 
the date of payment, the amount of pay- 
ment, and the current \alue of the trust 
fund.'" 

(-W+ Si. ' ctioii 2(^ 1. 1 11 t^ am e iul e d by Lidduig » 
iK ' vi . paiuijiiiph 4++ k* rijiul rt-- lolli'vi . ■. : 

"(h ) liiiinch m o iiii '. t+k» SiMid *h4 1 laiMidou -. 
W'a 'i tt ' ManaaL ' uu ' nt Branch t+f t+k» Noilh 



( '(noliiia Dc ' piiitiiK ' nt H+' 1 luman 
•■ ourco '. " 
(-+++ 44^ lollowina 44t44 t^ ■. nb -. niutL ' d U*f- 14^ 
proM ' jiou ' j t4 4i4 L 1 l - l 2<' 1. 1 l^(a i . vs hich 
wi» H*4 adopt e d by r e ftfivnct * : 
"S^ ' ction 2^ I II"" I ii i biliiv rL ' i.|uiri. '! iu ' nl -. . 
f<++ Cosorajo k*f ■ ikklen acckk ' ntvil occuni. ' iu\j '' . 
tVh- ow iK - r ef opc ' icitor e+ » ha/.cirdou; . wai . t e 
ti e atnu - nl. "Itirii ' ji.'. t-vf di '. pO '. al fucilil) ' . t+f h- ' jr»nip 
H+ vikh liu iliti e'i . inii '' t di. ' miii i'' li\ilo fiiiiincKil ne- 
■' pon ' obiliPr fi->+ bodilv i npir]. HH-h4 prop ei lv d. i ni 
H^ h->- ihiid parlK". . cau '' i. ' d by '' Uddt - n i[CCK l ;. ' ntal 



occurn. ' nci." . ari ;. ing from opcration ' j t4" (-ht» facil i ty 
ep group e+' facilitici i . 44tt» mvnor t+f (iporator 
mu '. t has e ft«4 mciintnin liability ciH e rag e ft+f 
j. ud^l^Jn acciilonlal ncLuriL ' ncL" i i++ t4+e anKuinl i-vf 
tt l e a -' l %r\- million pef occurroncLi v . ith W+ annual 
aggregate t4 ttt- Ica '^ t 4>4 million, exclu 'i i' i e h+ l e gal 
dc ' funr . o cor . ti i . I hi - j liability coseriige may be 
d e mon i' tratc'd t» '. pecinod m panigraphv (a )( 1 ). 
(a)(2). (a)(."i). (a)(1). (a)( 5 ) . r+«4 (viX^ i i-4 ^4++-- 
!. eclion: 

(4-^ Avt cni . lU ' r nf operator mrty d e mou '. lrat e 
t4+e reiiuir e ti liability coserage by ha'i ing 
liability inMircmce *>i I ' pecified 14% (+n^ p;u' 
agviiph. 
(+^ I ach itV i iiiance policy muvl be iimended 
by allachm e iU (-4 tbe 1 la^'aidou '. Wa '. tL ' 
1 acilitv I Kib i lilv I ndor '^ ement h+ 



denced by » Certificate t+f 1 lability In -' Ur 
ancQ. 44+e wording t4' t4+e endor '^ ement 
mu -. t be identicvil k* t4+e ' . scMding ■■ pecified 
m Section 2^' 1. 1 .s Id), -t-be wortling f4 (4+e 
certi l icate t-4 iiT ' iirance mu-t be identical 
tt+ tbe ' . sording '' p e cilied h+ Section 
26 1.1 51(j). 44+e ovmer t*f operator mu^ . t 
i ' Ubmit » '' igned duplicate (iriiiinal t-4- Ae 
endoi 'i ement e* f4+e c e ilif i cat e h4 in -' in\inc e 
k* (4+e Hranch 4+ r e c-| i ie '. led by f-be 

Bninch. (4+e oi . i . iiei h+ operator htu"1 pro 
vid e a r . igned duplicate original t4 t4+e m- 
l uirance policy. rVft o' l V n e r t*f (Operator t4' 
ft t+evr tacilil' i m+M- viibmit t4+e ■■ ign e il 4+*- 
l^licat e original t-4 t4+e 1 la/artlou '. Wvivle 
facility I labilil) 1 luloi^ement i-vf t-be 
Ceililiciite b+' I lability In -. uianc e k+ (4+e 
Hriinch e+t- l e a '. t W-» diix -. b e loi e tbe dat e H+i- 
' I ' l Inch ha/ardou '. ' . ui -. t e h- (+f-4 recei' i ed fi->+ 
treat men I. ■■ lorage. t+f di '' pi' 'i vil. I he w- 
'■ iiiance luu '. i be el l ectis e belore l-b+-- i nitial 
receipt h+ l i a/ardoii -. \ \ a '^ l e . 
f+H I ach in '. uriiiKe policv mu '. t be i 'i Mie>.l 
by r«+ uV ii iie i ' ' . ' . hich. rri- r+ minimum. \^ fi- 

ceiV ' ed H* lran ■' ^lct t4+e biiviiu t*f ii^ ' iir 

aiice. H+ eligible k+ pros ide iiV ' iiiance c+^ 
rH+ e \c e'.'. t*f ■■ uipluv lin e-' iiv .i iier. i-h- t-me 
t-i+ nn'ie Slate 'i . 

(-^ A+t owner t+f o|ieraloi ma' ' , iiu ' et (4+e w- 
(.|Uiiemeiil '. t*f t4++-' [ . eclioii by pavina «■ fi- 
nancial ^e-4- b+ U ' ong t4+e corporat e 
gVKiiantee J+*f li . ibilitv co\'era ' - ! e rt-- '. pecilied 
H+ paragiLiph '' (44 n+hi (4« e4 tfw-- Section. 

(-4-f 1 uibilily H^*-4- fund. 
(+^ A«- o' l ' . ner (->+ operator ma> demon -. trat e 
t4te required l i ab i lity cov erage by e ' 4ab 
li '' h i ng ft '■ vklden accidental occurrencei' ' ti- 
abiliiv ini -. t IiukI w Inch conform '' k* the 
r e qinr e iu e nl" h4 4«^ paivigiaph ftft4 by 
'' Ubmiltiii ' j ftrt oii ' jinall' i ■' ignei.l duplicat e 
t4 (4+e Iru ' vt aLireement Vt* U+e BivUich ftt- 



9^.? 



SORTH CAROLISA REGISTER 



PROPOSED RULES 



k ' ast 64 day* bofdro riw date ef which 
hdi'ank'U '. ' ■ sQ '. t e '^^ t+p4- fi-'l'lm' i ChI fof tr e (U 
mcnt. liloruge, »f di- 'i pci ^. ul. 4-he triuitoo 
muc i t be cH* L ' ntity >shich has the authority 
te a&t- as a tm^ . t e e m^ ' ■ shora trur . t opor 
atioti' . aw reuukitc ' d c*ft4 L'xaminod h^ a 
I' e dt ' ral evf StatL ' aaL ' ncy. 

(4ii '44^ ' ■ vording e+ A* tni '. t agrL 'e m e nt 
mu !. t l*e identical to- the Wdrding r . pecifiod 
m Sucticin 26L151(lo(l). »b4 Ae t*w4 
agroijmont mu -. t tx* accompanied hy » 
formal certification t-4 acknc - i i lodiiomc ' nt 
^fof example', t-ee S e ction 2<^]. 151(k)(2)|. 

fiit) Qft t+H» date (4 t4*e initial e r . tabli ' jhment 
b( ih^ j ' Udden accidental occurrencer . li- 
ahiiity tru '. t fund. l-ht» ' . alue b+ (4+e fund 
■ ihiill be i+4- leai . t (-Vr-» million dolkirf . 
C^l.DOn.d l lH), rt* M*rb tHhef amount a* Fe- 
quired by- t4+e Branch pur >. uant to Section 
261.1 17(c) wfd^ 

(-Hi4 tf a» cvner »f operator j. ub ' .' . titutu'Li 
other fincmcial a '.' airance ft+f liability co' i ' 
eraae »* ^^ pecified m- (-b+* Section t++f aH t*f 
part (*f (-he ' uuldun accid e ntal occun e nce -. 
liid")ility trui ' t lund. he may ^ aibmit a Vrfl4- 
teft reque '' t to Ae Branch f»f r e l e ase e+" (4»e 
amount i« t-he tru '. t fund i« exce i io (-4' the 
iunount o+ t4+e required coveraije to he 
demoiTitrated hy- the ' iudden accidentcd 
occurr e nce ', liability tru '. t fund. 

(-VH ;\ny p e r -' On ' . she obtain *, t+wal- judgment 
*+f ^ l e ttlement agiiin '. t the owner t-vf oper 
ator fo+ bodily injury and or prop e rty 
damage cau '. ed by a r . udden accidental 
occurrence h+ occurrence ', aii '. ing from the 
op e ration »-4~ the kicilily may r e qu e' U pay 
ment from tbe i . udden accidental cKcur 
r e nc e f . liability tru j. t fund w- r . ati '. faction 
fevf the judaiTiL'nl t+f r . etllement by submit 
tmg to the Tru '. lee: 

ar fe- the Cd '.e ' ■ ' . here a per '. on ha'r nh- 
tained a iinal judgment, a certified copy 
8+" the judgm e nt attd a '. tatement. signed 
by the claimant '. attorney evf record. 
that the judgment wh^ either (-!-> teft- 
ilored by the highe '. t couil h+ the juri ' ' . 
diction ' . ' . here the action "rtT*, brou ' -iht 



aft4 the o' . ' . 'ner ef operator e xhau '. l e d 
aH- right ' - . (4 appeal. **f (-^ rendered by 
the higlie ' j . t court V i hich rendered a 
judgment rtft4 ho appeal "A-a^ made bv 



the o' l ' i uer tr*f operator to a higher court 
' ■ v'lthin the time allowed by applicable 
statute »f rtile. t*f f4-^ agreed to by the 
O' i ' i ner tvf operator: of 
br •h+ the ease of a s e ttl e m e nt, aft- tvri- 
ginally signed duplicate e4 the settle 
m e nt agreement emd aft ori'^inall'. 



signed duplicat e t+f the rel e as e «4^ all- 

ckiims. 
fw} After r e ceiving the material described 
m S e ction 26 l.kl7(a)(3)(v) above, the 
Trust ee shall fwy to the person who eh- 
tained the judgment ef '. eltlement s . uch 
amount e+" the judgment ef settlement, 

1-. 1 1 * »-\ .-» t 1 1-1 .-« 1- .-^ 1. 1 . < t t-i .'I -^ *-i-i j-i 1 1 -i-t -f j-i t f 1-1 . t iiiiixi^ 
TTTTT rTT^T l\T l^ n.VT_^^J 1 1 IV. HI J i\J Lit 1 1 U 1 1 1 H- 1 LI I I U .1 

» the trust. 

(-W)- -rve- trust shall be tenninated ' . s'ithout 
pnor written coiT i ent h4 the Branch. 44te 
Branch may agree to tennination (-4- tbe 
trust when it ha* detennined tbat tbe 
owner ©f operator has substituted alter 
nato financial a '.'. uranco fof liability co' i ' 
orage a* specified m- thi* s e ction. f*f ' ■ ' ■ hon 
it ajipro'/es the certification t4 clo '. ure ©f 
the facilit'f '. ubmilted pursuant to Section 
261.115." " 
f+4^ Section 26 I. k 1 7(a) i* amended by atlding 
a ftevr paragraph f4-^ to lead a* folkni i s: 

Surety bond guaranteeing payment tftto 
a sudden accidental occurrence '! liability 
till St fund. 

fH Aft O' i ' . n e r e* operator may demoiT i trate 
the reqiured co' . erage by obtiunmg a 
surety bond which confonns to the Fe- 
quirements ef th+s paragrii|'>h awd by sub 
mitting the surety bond to tbe Branch. 
Aft owner t+f operator t4 a new facility 
must s . ubmit the bond to 'the Branch at 
least 60 days before the date »» whicii 
hazardous waste i* fif*t received fof t reat 
ment. storage, h* dispo '. al. 4-he bond 
mu '. t be el le ctise bekue tbt^ initial receipt 
ef ha/ardou '. ' ■ ' . a '. te. 44te surety company 
issuing tbe bond mtist. at a minimum, be 
among those li '. led a* acceptable sureties 
w* I'ed e ral bond ', ift- Circular ^5t> h+ the 
I ".S. I^epartment h+ 1 rea 'i upr. 

fttf -Hte ' ■ vo i ding ef the surety bond must 
be identical to the wording r . pecified m 
S e ction 26 1.151(1). 

fhi-) 44*e ov . ner »f operator who ttse* a 
surety bond to '. .itisfy the requirement ', ef 
S e ction 2^ ' kM7(a) 4taH- ah^e- establish a 
standby tnist fund. I nder the t e mts »f 
the surety bond, ah payments made 
th e reund e r shall, m- accorLkmce w-tth m- 
sti'ucti(Hi !. from the Branch, be depo '. ited 
by the surety directly mto- the standby 
trust fund. 44ft* standby laist shall m ee t 
the rei-|uirement '. ift Section 2^' 1. 1 n(a)(J>). 
except that: 

fir Aft (uiginally sign e d duplicate t4 the 
till 'i t agreement shall be . . . idimilted to 
the Blanch w+th the ' . . uret'i bond: a«4 



NORTH CAROLINA REGISTER 



944 



PROPOSED RULES 



hr { ' Hill l+H* -. ((iinlhy ||-U ' 4 tuiui hs fund e d 
p i iiMKint U* *4+e rL ' ciuitx ' nu ' nt '. h+ SL ' cticn 
26 I .I 17 (a)( l)(viii). 4^ tullovving »» 
R€4 ruquiiL ' d: fH p(i> niL ' nt twte- t4w truiit 
fund rt^ ■i pt ' cifiod H% SL'ction 2( < I.I 17(u) 
(.^ )(iii ): f«4 annual s alualuin ' . . c» Ft»- 
quu'ed ^- t-l+e tru '. l ajr e t ' in e nt [m*i* 
2M.151(k)( 1 ) .St ' ctiiMi 444}^ an^ HtH »«- 
ticos e4" nonpavniont a* R ' quircjd l*¥ Ae 
t-TO^ iiLir e oinetit f-vet* 26 I.15l(k)(l ) St»e- 

(i¥} -l-be b(Mid ;' hall aucircinl ee ?4+a+ Ar» 

(nvnor ef opuralor ' jhull: 

rtr I'und J+>* ■ - ■ tundhv tru -' t fund » *«■ 
amount e c|ual f+* e ith e r (+k» •■ iint t+f t+n* 
jiidguK ' nt ^f ■■ L'ttJL'mLMit doLcnbod w- 
Section 2M.1 I7((i)l l)(vii) im4 iht^ «**4* 
t4 iidministonna twy- fund. »->+ t4+e 
amcniiU t-4 (4+e pi. ' ntil ■■ uin. ' . i . IucHl'v or h» 
1l" .'. . svithin t'iflaan f4->+ dav '. aft e r (+h? 
branch (->* » coun »-4 LompjioiU juri 'i 
diction iL .'. uc^ i+H order k+ t+wrt- e ff e ct: **f 

t*T I'ros ido altarnalo financial a - > . uranc e 
fof liabilily CO ' . oral! I, ' c+- ■■ pi. ' cilii. ' d h+ (4++-^ 
' jL'ction. cH+4 obtain t+te branch ■. v . riltjii 
appro' i cil b4- ih^ Li '''' Urance pros idod. 
within ninety fW} day - ' , aft e r r e c e ipt t»y 
both t-h^ o' . vnor t*f ti|Torator rt«4 l*y A^ 
Hiancli (-4 rt- notic e o4 cancellation t4 (+H* 
■' iiri. ' t\ bond Iron) (4te ^urotv. 



fv4 I nd e i t4+e lernT . <->+ t4+e bond. t4%e sur e ty 
; ' liall bc ' comL* liable **«• t+k^ bond obli 
Liation V i hen l4+e i" . s ner i-vf operator doei . 
Ht+4- peiionn c+-t ijuaiLattee>.i W t4+e bond. 

fvH -l-l+T' |ienal '. urn t*f l4+e boiul ■■ hall l*e at- 
l^rts^- hw- million dollar ' . . ( >2. ( l() ll .( ) l > ()). tw 
[ ■ uch other amount *i required i»y t+k» 
Branch i^'urMuint k* Section 26 I 1 1 7(c) t+f 

(\ ii) U rH* o' . ' i ner t-4^ operator :. ub 'i litute '. 
other financial a ' j; . uranc e fe* liabiliti < 



eraao a*^ '. pecified m- t+i+^ ' - . c ' ction ft+f aH- »f 
pn++ 1-4 (4+e ' airelv bond. 1+e H+ay ■■ iibmil a 
' i vrillen iei|ue 'i t k+ f4+e Branch k*f relea 'i e 
e+ t4» airnHint h4- t4+e penal -. urn *-4 tkt^ 
bond m exce -'-i t-4 t4+e amount t*f t4+e fe- 

■ : . uret> bond. 
(-vtH4 Anv per"On vrW obliUiT . final ]u<.1li 
m e iit 0+ ' . . etl lenient ai-iain '. t t-hr' o' . sner t-vf 
opeiiitor ftJ+ bodih . in|ur; < and or property 
dinnaue caused bv a ■■ udden accidental 
occtineiice i-h- ocl uiieiicev an ' oni; hinii (4+e 
operation h4 t+h:* lacilil) H+ay ie(.iue '' t pav 
m e nt from t+w '. uret; ! bond 14* satisfaction 
t*4 t4+e ji i dLiinent h+ ' eltlement by- Mibmit 
hm^ te- t4+T> I ru ' . ' lee: 



ar -kt t4+e «+M» v i here a person b«^ t4»- 
tain e d a f i nal jutl ' -im e nt. a certified copy 
»4 t4^ judgment aft4 a -. latement signed 

1"^ \ ! * t'' ^"' J • I ■ 1 ■ r->-i ■ 1 T-i t .- -1 I f J 1 j-»-t m - i-1 t T-. L , • , -t «-, 1 I l~i - 1 t 
I ' T I T IV tTTTTTTTTTTTTrTT CTTTTTTTTCT^ \..' 1 rC^TTTTT (. 1 111 I 

At> judgment w*^ e ither (-H r e ndered 
by- t4*e highest court « At» jurisdiction 
V i here t4+e action wa^ brought afh4 i4w 
o' l S ner h* operator exhausted a44 riglit ; ' . 

lit . • r-i.r-.. i ' tl t1 T- I 1 \ r-, \r-, , } . \ r-.-t, 1 \-\ \ - 1 1 1 ■ 1 1-1 t i i1t ft . t 

l ' I Lll'l'l^lll, VT T ^- I iCTTTm^rCT I ' T I 1 1 1^ I 1 1 !L.l 1 ^ .' I 

court ' i vhich rendered! a judgment nf^A 
m+ iipi^eal "A-a^ made by- t+k* ov , ner H+ 
operator k* a higlter court v . ithin !+w 
time allov .e d by- applicable -i tatute t+f 
rule, ef f^ agieod te- t>¥ y*e ov i uer «+f 
operutc^r: t*f 

br -l-H- tht» tT*-^:? H+ a settlement, aft t-tfl- 
ginally -. i^n e d duplicat e h+ t4+e s e ttl e 
ment agreement m^ a» onginally 
i . ignod duplicat e ef t4*«» release t4' al4 
claimi. 
(-i*+ After r e c e ii i ing t4» mat e rial d e f . cribed 

i+i- Section 26 1.1 I7(a)( I ) i viii) abo' . e. A^ 



Irust ee shall nolil; . t4-i^ Branch t-4 (4+r^ 
amount t-4 - uah judgment h+ settl e ment . 
-H+e Branch shall then instruct t4+e ov . ner 
»f operator k+ pay to- A<» trustee such 
amount '. . H++(- k+ exceed t4+e amount t4 (4+r» 
judgment i-f selllemeni . H¥hi t4+e cost ., h4 
admiiii .. lenng ••a44 lund. t-vf l4+e amount <->4 
t+H* r e quir e d cov e rag e . V i hiche' i er tt. te-r-^ 
tf t4*e own e r »f op e rator fo4* k* peiform 
a^ required by ih^ IJranch s instiiiction .. . 
(4+*' IkLinch shidl in .. truct ih^ suielv k+ 
l^kice fund .. i++ t4+e amount guaranteed ft*f 
(4^ facilitvdes) m4t> (4+e standby 



fund. -Bw trur . t ee f . hull pay to Ae person 
who obtained A*» judgment i*f settlement 
.. iich amount h4 (4+e judgment H+ settle 
ment . b++(- r+rt+ t-o- exceed (4+e amount (-4 t4+e 
kinds H+ t4+e tru .. t. 

fjr} I'nder (4+e terms h4' (4+e bond. At' sui e ty 
may canc e l (4+e bond by .. r- ' uding vi . ritten 
notice (-4 cancelkilion by ceil i fed mail (++ 
(4+*' OSS ner t+f opeiator at+d (t* (4+e Branch. 
Cancellatuui H+ay ho(- take elfecl . hms" 
ever, until at- lea '. t i++k^ hundred tssenty 
( I2 ' M dav '. alter t4+e dr+te ih4 receipt t4' t4+t^ 
notice (-4 cancellalion by both ih^ ovs ner 
t+f opera(or at+4 (4+e Branch, a*- shown by 
(4+e latter return receipt. 

f^rt-l ^Vt-v blind -. Imll Ji^ cancelled ss itluuit 
jirior ss ritten con '.e nt h4 (4+e Bninch. 
-1-4+e Branch may agree (++ ciincelkilion o4 
(4+e boiul ss hen 4 l+a-- determined (4+t+(- (4+^^ 
os' i ner h* operator 1+t+> L . ubstitiited alter 
HT+tT* hnancial a?^ ;. uranc e t++f liability e^t+s— 
erag e a^ '. pecified h+ t4+t-^ .. ection. t++ sshen 
ri- aj^pros e s (4+e certification t4 closur e t4 



9.^5 



\ORTH CAROLLXA REGISTER 



PROPOSED RULES 



the facility 'i ubmitl t!4 purr . uunt to- Section 
26 . I.115." 

(44) S e ction 26 ' 1. 1' l7(ii) fs (imcndcd W adding 
a ftew paiaoruph fS) te Ht»«4 »* follows: 

'■U^ 1 L'ttiT e»f credit. 

(4) Aft own e r »f operator may domonr . trato 
t4+e roc|uirod co' i orajjc \*f obtaining »» 
irrL" i Ocahlo letter »f credit which confonns 
te- Ae requirementr i e4 Ai* paragraph c*ft4 
by iiuhniitting t+te letter t+> th*» Branch. 
Aft owner (+f operator rf » ftew lacility 
mur . t jiubmit tht» letter . e+" credit te- t4*« 
Branch at lea ' jt (^ dayr . befoio t4*4* dak» eft 
' i vhich ha/ardour f war . te » fift* recei' . 'ed f&f 
treatment, >. torag e , Bf di -. po '. al. -H+e l e tter 
f4 credit inii 'i t )*e effect i' l e before t4wT h«- 
hal- receipt *+f hib'ardoi i'. wa ' . i te. 4-be i ;.' : . u 

1 1 T ^ ITrTTTTTTTTTTTT TTTTTTT ( T, IIT I CTTTTT^P T < 1 1 1<~ I I 1 Hi .' 

t+k» anthorily tft i 'l Mie letten . ef cr e dit aft4 
i . i . ho ' . . e letter ef credit operation ', afi? regu 
kit e d »t¥A examined by a ledercd ef State 
agency. 

fit) Wh* wording of t-be l e tter ef credit 4+aH- 
be identical tft t+n* ' i v urding ' . . pecified » 
Section 26 I.151(in). 

(w) Aft owner t^ operator Vrbft U ' - i er . a letter 
»f credit to- r . atir . fy (+k» re(.[iurementr i e+ f+tk- 
f . ection !. hall afeft e '. tabli '. h a '. tandby tiii '. t 
fund. L nder l4+e term; ' t-4 t4+e letter t-4" 
cr e dit, aii pavment '. made thereunder 

tbe Branch, be d e po i. ited by the if ' i ' Uing 
in ' . ' titution directly ift4ft tbe L ' tandby tRi ' jt 
fund. Ihi j. i ' tandby tru ^' t fund ;i hall meet 
the requirements i» S e ction 26 1 . 1 17(a)(3), 
except that; 

ar Aft originally liigned duplicate ef t+^e 
tRi '. t agjeement j' hall be ^' Ubmitl e d te- 
tbe ihanch ' ■ silh l-be letter t-4 credit: aft4 
br L nt i l tbe 'i tandby Iru '. t lund ¥r tiiniled 
pur ' _ . uant to- t4*e rec|UirementL . ef Section 
26 ' I. M 7(a) (5)(ix), the following afe Het- 
r e c]i.iired: (-1-^ payment iH4++ tbe Iru i' t 
foft4 a^ •. pecitied tft Sectuui 
261. 1 17(a)(3)(iii): (4H anniial ' 1 akiationo 
a^ reel ui red by t+te Iru^t agreement [tee 
26 l.l'si(k)(l) Section 44)| afwl ftw) fte- 
ticer . Bi nonpayment as ret.|uired by t4*e 
truL . t agreement f^ee 26 I. j.'illkii 1 ). Set^ 

f+v) 4-be letter ef cr e dit i. hall be acccunpa 

svhich 'i hall '' tate: 
ar -l-4>e letter *4 credit number: 
br 44te ncnne ef t4+e i j.-' uing in i. titulion: 
er 44+e date t4" i 'l suance f4 f-be letter ef 
credit; 



4t 44*e 1';Pj\ identification number(r . ) ef 

the facil i ty(i e>i ); 
er 44*e namo( i i) aftd addror iJ i(e! i ) ftf Ae 

faoility(ie!)); aft4 
fr ?4*e amount ef funds assur e d by Ae 
letter t»f credit. 
fv) 4-be letter ef credit shidl be irr e ' . 'o cabl e 
aft4 shall be issu e d fof a period ef a4- least 
e«e yeaf unless at- least »fte hundred 
twenty ( 1 2fl) 'Am^ before tbe current e«- 
piration date, t+ie is - . ' uing institution noti 
fte* both the owner t+f operator aft4 the 
Branch by certifi e d mail f4 a decision ftet 
te- extend the expiration dat e . I nder tbe 
terms ef tbe letter ef credit, tbe efM* hun 
dred aftd tw e nty (120) days waH- begin eft 
tbe date when both tbe ovsner eF opera 
tef aft4 tbe I Jranch have recei^ i ed tbe fte- 
tieer a^ shown by tbe latter r e turn receipt. 
fvi) 44te letter ef credit shall be is '. ued m- aft 
amount at least twe millicin dollars 
|S2.(li)0.0()n). ef wteb other amount at- re- 
quired bv tbe Branch pur '' Uant te Section 
26 . 1.1 . 17(c) ef (4^ 
fw) U aft o' . vn e r ef operator i . ub '. titutes 
oth e r financial a '' Suranco a* specified ift 
tb«^ s ection fef al+ ef part ef tbe amount 
ef tbe l e tt e r ef credit, be fttay -. ubmit a 
written requ e'. t te tbe Branch fef releaS ' C 
ef tbe amount ef tbe lett e r ef credit h% 
excess ef tbe amc^unt ef requir e d coverage 
te be demon ^' trated by tbe letter ef credit, 
(' ■ 'iii) j\ny person w4+e obtains linal judg 
ment e+ settlement agaiu 'i t tbe o>' i ner eF 
operator fef bcnlily injury and or property 
damag e cau ^. ed by a sudden accid e ntal 
occunence ef occurrences ari ^' ing from tbe 
operatitm ef tbe facility may reque '. t pay 
ment fr(mi tbe letter ef credit h+ ii atislac 
beft ef tbe judgment ef ' . . etllement by 
submitting te tbe I ru '. lee: 
ar fft tbe cas e V i here a person ba^ eb- 
tained a linal judgment, a certified copy 
ef tbe judgment aft4 a [ . tatement. signed 
by tbe ckiimant '. attorney ef record that 
tbe judgment was either (-H rendered 
by tbe highe '. t court m- tbe juri '. diction 
>s . h e r e tbe action wa* brouglit aft4 tbe 
owner en operator exhau '. ted aH- rights 
ef appeal, ef (-3-f rendered by tbe highest 
ccuirt which rendered a judgment aftd 
fte app e al was mad e by tbe owner ef 
operator te a high e r court within tbe 
time aliens ed by applicidile '. latut e ef 
rule, ef frH agreed te by tbe owner ef 
op e riitor; ef 
br \¥t tbe ease ef a '. ettlement, aw efi- 
ginally signed duplicat e ef tbe settle 



NORTH CAROLINA REGISTER 



946 



PROPOSED RULES 



nit ' nt i i uri ' L ' mL'nl *h4 rtft originully 

f+»r> jMIlt roci. ' i' . inij A<» mutL'riul ik" ' Crilit ' d 
H+ Sc ' Ltion 2( ' 1.1 V-iM) (5)(viii) iibos e . At» 
1 iU '. Il ' l ' -. IkiII notily (4+e branch t-4" t4+e 
amoiitit (-4 'i iuli jmlLim t' nt t*f ■■ (■ ' ! ik ' numt. 
44+e Bnnuh ' jhall thcjii in ii tnut (4+e in; ' ti 
tution i '. i . uina t4+e l e tt e r *4 l red it k* pay t» 
Ae Tru '. t e e M+eh- amiuint '. . H++4- k+ i.'>iLL'od 

rhH4 t-bt' lo -. I '. h+ iKlmini '' lL ' rm ^ j ?.«+4 luinl. 



. peciried ift t-h+s i. oition. I hciL' 



iini '' m 



H+ t4+e iiniiHint *-4 Ar' r e quir e d cos eriig e , 
v i hii.'hL" i L ' r js k^^*T ¥bt» Ini j it ee t . hiill p^y 
te- f4+e p e i '. oii ' . vho obtainL'd t-hf jud ' -imL ' nt 
t+f '' Ollk ' nu ' iil 'i iuh iimn i int i-4 t-bT» judii 
mont H+ ■ n. ' llk'nK ' nl. h^ h+H k+ i.'\ll ' i.^1 t4+e 
iinioiinl t-4 r i iiul -. h+ t4+e tru ' 4. 

HH 4+ (4+e (" ■ ' ■ n e r t-vf op e rator lIol ' l . »r^- e^ 
lubli '. h alterniite financial asMirance fof ti- 
ubility CO' , ercijL' rtt. ri.'quirod by- (44-^ •■e Ltion 
rt«4 doL" . Ht+t- obtain ' . v i illen appros al 
Ironi l-be lirviiuh >4 i+m- ■■ uch alli. ' rnati. ' b- 
naiu'ial a '.'. uraiux ' k+f luibilit> i. i" i \ji"aui.' 
svithin ninet; . (-*-<-)• lUiv ■ : ■ t4' reioipt by both 
At^ O' . vn e r t-n^ operator »h4 by- t-btf Branch 
(4 a not ice l-bt+t- (-be i '''' uina in ' 4itiition w+tt 
H+*4- extend (4+e letter (-4 credit b e v oiul (-be 
current e xpiration t.late. t-be Uiunch ■■ IklII 
drav i (-H* tbr^ l e tt e r t4 credit -i-be Br;tnch 
may delay drawing »«■ {4+e l e tter t-4" cr e dit 
4 tbe i ;.; 'Uing in '. titiition grant '. »«■ exten 
4+*ft- t4" (-be term i-4-' l-be letter t4 credit. 
During t-be kt^ tliirtv (-rW-f ilay . h+ rtt+y- 
'' Uch exteiV ' ion. (-be Branch '. hall dni' i v 
t*«- (-bt* l e tter f4 credit t+ (-be o' . s ner i-n^ t*f>- 
erator bwr tailed (4+ pun id e alternate b- 
niincial a^ ^. urance b+f liability coverage w^ 
'. pci, ified i+i- t-bt^ s e ction t->+ bet^r tail e d k-v 
obtain V i iilten appro' , liI by l-be Branch t-vt- 
'. IK h a^ ' iiianc e . 

HvH ^'t-v letter t+t- cr e dit ■■ luill be teimiiiLiled 
' t sithout prior ' . vritten convent t4" tbe 
Branch, -t-be Branch may return t-be letter 
t*l- cr e dit (** (-be iv . uinL! in^tilulion U*^ t-e*— 
muuilion i tS hen t-be Bivinch hr*^ deter 
mined (-bttt- (-be o' . \ n e r t+f openilor bre. 
vub '. tituted alternate financial ar , L , urance 
b+f liiibilitv CO vera ' je «-• ■■ pecitied h+ t-b+s 
■■ ection. t++^ V i lien ri- appros e ', (-be cert it 
icvition h4 clo '. iire h4- t-be Ivicilitv '. ubmilted 
pur '. uanl t-t-k S e ction 2< ' 1. 1 1 5." 
(-bH Section 2< ' 1 . 1 |7ui) ^, am e nded by- adding 
H- Hevr paragraph (-^ k+ read rt> tollovi v: 

■lr-*e t4 multipl e linaiicuil mecluuu '. m -' . 
Aft ovvner et operator ftK+v demon '. lrcit e 
t-be required liiibility co' i erage by e '' tub 
li"hin ' .i more than e++e linaiicuil mech 



' . . urety bond ' ) guaranteeing payment wM^ 
St tru j. t fund, l e tters e4^ credit . »ft4 inr . ur 
anc e . -bbe mechani ' - . mr . mu '. t be a^ '. peci 
t+e4 m- paragraph !. f-l-K (-t^t f-l-h- Hft4 (->+ *+f 
(4^+^ '. eel ion. except t-brri- b h- fbe combi 
nation t4 tbe m e chani ' im ;. . rath e r than t-be 
■ ' . ingle mechiinii . m. ' ■ ' ■ hich mu '. t pros ide fi- 
nanci(d av - air.inc e i^ liability ctv ie ni ' g e b*f 
rtft amount h+ leu '. t t-Mrirv million dolla i ' .. 
(S2. 11(1 (1. 0( 1 0). W w+ owner t*4^ (>p e rat(H- 
«^.eti rt truvl fund >« combination v . 1 1 h » 
r . urety bond f*f » lett e r t4' cr e dit, be may 
(*se (be tru '. t fund *s (-be '. tandby trvi -. t 
tund t+*f U+e eith e r m e chaniMiT . . A .. ingl e 
■. tandby tru ^. t tuiul may be e.. tabli .. hed t+*f 
^w-t* t+f mor e mechani '. m .. . -bbe Branch 
may hm? ttftv rtftd aU t4" t-be m e chani '. m .. k> 
pro' , ide ft+F .. udden accident id occurrences . 
l i ability co' i erage b*f Ae ficility." 

(44+ -bbe f dlov , ing ■. h.ill be .. iib '. tiluted t^^ t-be 
proM '. ion .. ^4■ -b> (-444- 2^ 1.1 r(b). sshich 
Wt+-. ftt-4 adopted bv releience: 

"(b) Co' i erage fH+ nonviulden accidental (r^e- 
currenceL . . A» o' > ' < n e r t*f operator (4" » 
'. urtiice impoundment, landfill, evf laml 
tr e atm e nt lacility v . hich >-. U '. ed (+* manage 
ha/arilou .. ' . ' . .| .. te. eH^ e* group h+ vuch f icil 
itie ^. . mu ^. t demoiv . trat e financial re '. pon 
■. ibility k*f bodily injupy afi4 property 
damage h* thircl partie ' " . cau- .e d by non 
.. udden accidentid occurr e nc e., . n | .. in ' _' 
trom opei.ition .' t4 l-be tacil i ts t->+ ' -jroup 
H+ tai ililie .. 1 he o' . v ner t*f op..Mati'r mu .. t 
bi+ve r+«4 miiint . iin liabilif , co' i e rag e b+f 
non . . udden accideiitiil occurrenc e;, wt (4^ 
amount (r4' «+ leci '. t 44 million pef occur 
r e nc e w-b-b rH+ annual aggregate (4 c+4- lea '. l 
%^ million. exclu .. i'. e t4 legal deleiT . e ct" . l .. . 
liabilit' i CO' , er.i ' -^e ma' , be demon 



.. trat e d a* r . pecitied Wt [laragraphv (b)( 1 ). 
(b)(2l. (b)(3). (b)l I), (b)(5). aft4 (b)(6) t4' 
l-b+^ .. ection: 
f-l4 Ah- o' i ' i ner i-h^ operator may demon '. triit e 
l-be K ' c|uire>.l luibility \ .o\ erage by ha' , ing 
luibililv in '. Liiance *s ; . pecified m- (-bt-r par 
iigi'a|-'h. 
44 [iicli iiT . urance policy mU '. t be amended 
by- attachment i4 (4+e I la/ . iidLiU ', \\'a .. le 
I Licility I Kd^ilit'i 1 luKM '. ement h+ ev+- 
denced by a (.'ert i ficate 1 labilit'i lii '. ur 
ance. -bbe ' ■ voiding t4 (4+e endor '. ement 
imi '. t be identical H+ 4te ' , ' . oiding .. pecified 
m- Sectu'ii 2^ 1. 1.^ I II). 4-4+e ' . soiding <4 (4+e 
certificate t4 lU '. urance mu '. t be identical 
k* (4+e vv ordimj .. pecified ift .Section 
2( ' 1. 1 5 l(] ). -bbe ov . n e r »-►+ operator mu .. t 



94' 



SORTH CAROLL\A REGISTER 



PROPOSED RULES 



r . ubmit ft flignod duplicutt? originul »f the 
L'ndon . ornont fvf Ae ct ' rtiricato f4 iniiuranco 
te- tl+e Branch. ¥ R'c[UL"itL'd h^ t4«* 
Hranch. the owrnjr ef opcratcir mur . t pf«- 
vitk* » f i iunL'd duplicatu oriuinal f4' Ae m- 
'. u ranee policy. Aft ownur e* opc'rator ef 
» n e w I'acility mu '. t tuibmit Ae r . igncd dn- 
plicatci original »f t+w Ila/ardouG W;i >i te 
Facility I iahility F.nd(ir ''e m e nt ef Ae 
CortificatL ' ef 1 iability ln ' . . iirance to- Ae 
Branch »+ l e a; . l W4 day . b e for e t4+e df4e w* 
i i vhich ha/ardour . ' i va ^. te t^ 6f^ rec e iv e d fof 
treatment, iitorago. »f di '. po '. al. ttt» m- 
!. uranc e mu ' jt be cftijctivo buforo At» initial 
receipt (4 hai/ardour . ' . sa '. te. 

fti-^ I ach in ' iuriince policy mu '. t be ir. ' aiL ' d 
by ftft in 'i iirer ' ■'. h i ch. »4- » minimum, i^ ^i- 
c e n '.e d to transact tb<» bu -. in e'.-. f+f in ' nr 
anc e , t+f e ligible to provid e insuranc e wi 
ftft exce ' i '. «4f Liurplufi line; , in ' airer. tft t+fte 
t+f more State i ^ 
(rii Aft (nvner b+ operator may meet At^ Fe- 
qiiirement ' ' . b+ t4ft^ >,e ction by- pa -.-. ing ft fi- 
iKincial te^ Hf U '' iiig t+k* corporat e 
guarant ee t+*f ludiilit) ccn e rage ft^ '. pecilied 
tft paragraph - : . ft4 ftft4 ffel t4~ Ai^ !.i e ction. 
frH I iabilit;. tftH* t+mdr 

fi^ Aft ov i ner «+f (operator may demonr . trate 
U+T' required liabi l ity cov e rag e by- e-. tab 
li -. hing ft ntMV . vidden accidental occur 
r e nc e r . liability trii '. t fund V i hich c(*nfomTi 
to t-be requirement;' . *-4 f-b+^ paragraph ftft4 
by '. ubmitling ftft originally ^ . igned du|ili 
eft+e H+ t-be tni '. t agreement to t-be ijranch 
ftt- lea - 'l M day . before t4+f dat e Hft ' . v hich 
ha/.ardou ' ' . ' I ' l a '. te t^ ftf^ recei' . ed ft+f Ireiit 
ment. i. torago, t*F di '. po ^. al. 4-bt» tni '. tee 
mu '. t bt* ftft e ntity ' . vhich bft^ t4*e authority 
to at4 ftt- ft tni '. t e e ftft4 sslKV . e tru '. t oper 
ation;' . ftfe regulated ftftd examined by » 
I etleral t-H^ State iigency. 

f+i-f 4-!+e V i ording trf fbhe tru ^. t agreement 
mu i^ t b«» identical to f4+e warding '. iiecified 
ift Section 2f-"l. 1 ." ^ l(k)( I ). ft«4 4^ t+tKf 
agreement mu '. t be* accompani e d by ft 
iormal c e rtiricalion t-4 acknoi . vledgment 
t4+w example, ^^ee Section 2^ 1.15 1 ('ki(2)|. 

fiii^ Oft tbe date »-4" tbe initial er . tabli ^. hment 
nf 4+e noiT . udden accidental occurrence -. 
liability tru '. t fund. t4+e ' . (ilu e (->+ t+tr' fund 
j' hali be ttl- lea '. t ^ million dollars 
(U'. 1)110. 0(10). w s«t+i- other amount ft^ Fe- 
quirod by 4+e Branch pur '. uant to Sect i on 
26 1.1 |7(o) ef f4+- 

4+ ftft o^s ner h* operator ^. ub '. titute - j 
other linuncial ar . f . urance fof liiibilily cos' 
erage as - . p e cified ift 4ft-v .. ection fof all Bf 
pftrt fc>i tfee noii ' iidden accidental occur 



rence ' i liability trur . t fund, be may submit 
a written reque -. t to the Branch ft+f rolea ^i u 
ftf the amount ift t4*e tru -. t fund ift exce i.j i 
t>f t+te amount Bf Ae required coverage to 
be dumoni . trated by Ae nonr . udd e n acci 
dental occurrence ', liability tRi ;. t kind. 
fv^ j\ny pen . on ' . sho obtains , final judgment 
e* settlement againr . t (-be oi i vner b* opera 
tof fef bodily injup. ' and or property 
damag e caur . ed by a noiTjudden accidental 
occurrence e* occurrenc es, ari -. ing Innn Ae 
operation ftf the facility may requ e'. t pay 
m e nt from Ae nonr . udden accidenlcd h*^ 
currencer . liability tru - jt fund ift r . ati ' . . faction 
ftl t+te judgment bf ;. ettlem e nt by submit 
t+«g to the Iru '. tee: 

ftr Ift tl+e eftse ' ■ s h e r e a p e r -. i^r bfts bI*- 

tained ft final judgm e nt, ft c e rtih e d copy 

Bf tl+e judgment »fi4 » ^ . lat e m e nt. '. igned 

by the claimant i . attorney bI record (4*ft4- 

Ae judgment w*t either fl-^ r e nder e d 

by t+te highe '. t court h+ t+te juri '. diction 

wher e (4+e action w*s brought aft4 (+»e 

osi i uer bf operator e Kliau -. t e d ftll right i. 

bI appeal. B+ f4+ r e nd e r e d by t+te highct 

court wliich rend e red a judgm e nt ftftd 

HB appeal w«»i made by t+te ovvner Bf 

operator to ft higher court v . ithin t-be 

tim e allov ie d by applicable .. talule Bf 

rul e . Bf {^ agreed to by Ae o' l Hner Bf 

op e rator: Bf 

br Ift the eft** Bf a '. etil e m e nt. aft b«- 

ginally '. igned tluplicat e bI t4+e -.e lll e 

ment agreement aft4 aft originally 

'. igned duplicate bI (4+e relea -.e bI all 

claim ;. . 

f*4^ - After recei' . ing t4+e material cle '. cribed 

m Section 36 1. 1 ' l7(b)(.^)(v) abose. t+te 

I 'ru '. tee '. hall pay to t+*e per ;. on w-bft Bb- 

lain e d tbe judgm e nt bf '. ettlemenl i. uch 

amcHint bI t+te jiulgment bf -. ettlem e nl. 

bftt- FH-4 to exceed tl+e amount el t+te fund ; i 

ift Ae trur . t. 

fv+i-f Xb tru -. l ■. hall be terminated without 

prior ' i s lit ten coiv . ent i^ t4+e Branch. 4-be 

i?ianch may agre e to lermiiKition bI t-be 

Irui . t ' ■ '.hen i4- ba^ determined l4+a(- 4+e 

os' i uer BF operator bfts t . ub '. tituted alter 

11 at e financial a '.-. uranc e <t^*f liability co'i 

eft+ee fts. '. jiecified ift lift*' '. ection. bf '.'. hen 

Ft- appro' . e '. (4^ certification bI clo '. ure ^4 

tl+e lacililv '. ubmill e d pur '. uant to Section 

26 - 1.1 1 5. •• " 



H^ Section 26 1.1 P(b) t» amended by adding 
a FFew paragraph f-H to r e ad as lollow '. : 

^^f-H Surety bond guarante e ing payment tftto 
a noiT ' udden accidental nccurience '. b- 
abilit'i Iru -. t fund. 



NORTH CAROLINA REGLSTER 



94,S 



PROPOSED RULES 



fH Aft- own e r &f dp e rutor may J e mon -. trat e 
t+H» roquirod cdscraijc ' t»y obtaining a 
■ Hiroty bond ' . shich ccinform'i t^ t4+e Fe- 
quiromLMit '. t*f t+«^ paragraph cm4 by '. ub 
mittinij ^W '. urely bond k* (+n? Bninch. 
rVft (nsn e r »f opc ' iutor ef a HW^Ai Icaility 
mur . t '. ubmit At' bond k+ At» Branch at 
IlM '. ! 60 day . b e for e At' 4»4t* fvft vviiioh 
hcii'ardou '. vva ^. t e i-» fif^t- r e c e iv e d fof t r e at 
m e iU. n . torag e . t*f di -' po '. ai. 44+e bond 
miii ' t bt* oltL ' cli' i L ' bc'titrL ' At', initial roc^ ' ipl 
t4" ha^'ardou '. V i -a i. te. 4Ae L . urety ctmipany 
ii> . uing Ae bond muf . t. rri- a minimum, bt* 
amonj tho -ie li '. tL'd S'^ acci-'ptable i ' lirotiL": . 
(+H- I c ' il e ral blind -, m- C'lrcular -^^ f4 Ae 
I S nopvii'tmont t4 1 rca ' airy. 
fH4 4Ae ' i vordin i j (-4 Ae ■■ urelv bcMid mu '. ! 
be iil e nlical h+ Ar» ' i vtirding r . pocifiL'd h+ 
Section 26 1.151(1). 
fi+*4 I h e ov i nor t+f operator who n '^ L" . a 
■ airety bond H* '' iitf ' Fy Ae roquiremenl ' . ' t4 
Section 26 1-1 Tib) -AwU c4m-v e '. tabl i'. h » 
'. tandby tru - 4 fund. I nder Ae t e rm; . (!4 
Ae ■ - . urely bond. aU payment ', mad e 
thoreunder -. hall, m acc(*i\lanc e v , iih m- 
. . . truclion . . . from Ae branch be deptf . it e d 
by- Ae -. ur e ly diroclly i+rt+* Ae i . landb' . 
tru; . t land. 1 hi - : , - jtandby trui . t -. hall meet 
Ae rocjuirementc m S e ction 26 ' 1. 1 1 7(b )(.!). 
e xcept that: 

ar A-H- or i ginally -. ign e d duplicate t4' Ae 
I I'll ;. t agreement '. hall be '. ubmilted t+* 
t-be branch wiih Ae '. urely bond: aftd 
br I ntil t-be i . kindby Ini ' jt t'und i^ funded 
pur '. uanl t+* t-be requiiemenl ' .' . f4 Section 
2(' 1.1 Tlbii 1 Miv). Ae folKuving afe H+*t- 
r e cjuir e d: (++ p.i\m e nl i«4+* Ae Iru '. l fund 
a', '. pecifi e d m- Section 2^ f I TlhK .^ )(iii): 
(+14 annual ' . alualion '. a-- required by Ae 
to*^ agr ee m e nt f-.ee 2^ l.l.'^l (k)( 1) ^-iet^ 
A*» 44i(^ ttft4 f+ti-)- notice '. t4' nonpay 
men! an required by- Ae tru .. l agreement 
[--ee 2<"l.l.'^l(k) (44 S e ction 4-^ 
(4^4 i he bond .. hall guarantee Aat- t-be 
owner 9* operator . . . hall: 
ar I'und tbe '■ landb' i Ini '. l fund at aw 
iiniounl equal t-t* either Ae '. um t-4 t-be 
judgm e nt o* '. etll e m e nt d e'. cnb e d m 
Section 26 l.hrtb) ( l)(vii) aH4 Ae cor . to 
*+f admini .' tenng -.a^- fund. (*f t4+e 
amount f4 Ae jienal '' Um ' ■ v hiche' i er h^ 
le ...i . V i ilhin fifteen (-1^ day-, after t-be 
Hianch o+ a court t*f competent juri ' :' . 
diction i '.'. ue '. aw order t-e- Aat- efl'ect : »f 
br Provide allernale t'lnancivil Li ..'. uranc e 
fof liabilit; . co' i eiage a*. .. |iecilie>.l i+t- t4+p. 
'. action, afal obtain ^be Hianch ■. vi . niten 
approval t-4 t4+e a .... urance j^ro' - ided. 



^ 



within ninety fWf days after r e ceipt by 
both Ae owner Bf operator a«4 by Ae 
Branch (*f a notic e t4 cancellation b+~ Ae 
'. urety bond from Ae i. urety. 
Inder Ae temtf . t-4 t+te bond, tbe '. ur e tv 



shall becom e liable »» t4+e bond ohli 
gallon V i hen f4*e owner et operator does 
ft(-4 peiform a-, guaranteed by Ae bond. 
fv44 4Ae p e nal Miw* e4 t4+e bond shall be at- 
lea-4 s+* million dollars (S6.i> l)(i . l l00). w 
such other amount a-^ r e quir e tl by Ae 
Branch pursuant to Section 26 1. 11 7(c) t*f 

(vii) if aft owner Bf operator subs . titutos 
oth e r financial as '. uranc e ft+f liability et*^^ 
era go a-. .. pecified tft tba^ s . ection fo* aW o+ 
part (-4" t-be surety bond, be may '. ubmit a 
V i iitten reque '. t te- Ae Branch tof relea . ' . e 
(4 t4*e amount af Ae penal sum &i Ae 
bond ift exces . s ef t-be amount t-kf t4*e Fe- 
quir e d coi i erage tt+ be demo n '. l rated by tbe 
suret; . bond, 
(siii) A«y per . . on who obtiuns final judg 
m e nt **f '. etll e m e nt against Ae own e r (*f 
operator fof bodibi injur , iind or property 
damag e caus e d by a nonsudden accidentiil 
occurrence f*f occurrences ari '. ing from t4-te 
operation (-4 t^ facility may reque '. t pay 
ment trom Ae surety bond *«• sulis . faclion 
(-4 tbe judgment **f '. etllement by '. ubmit 
t+ft^ h^ t-be rru .. lee: 

ar A t4*e ea^e where a person ba-. eA- 
tained a final judgment, a certified cop;. 
94~ (4*e judgment i^iPi^ a statement, sign e d 
by tbe claimant s attorn e y. t4" record t4>a4- 
tbe jutlgm e nt wa-. either (-1-f rendered 
by t-be highe '. t court tft t4+e jurisdiction 
V i here Ae action wa^ brought a«4 t4+e 
owner ef operator exhau '. ted al4 right '. 
t*f appeal. 9* f4+ render e d by t4+e highe '. t 
court which reni.leied a juclgment r»^ 
H+* appeal wa^ mad e by f-be ow ner t-f 
operator t+* a higher court v . ithin t4*e 
lim e iillowed by apjilicable '. latule o+ 
rtil e . t*f (A+ agreed t<a by Ae owner t+f 
operator; €>* 
br A t4-He ea-.e t+f a .. ettlement. aft t-H4- 
ginally '. igned du[ilicat e >-4 t4+e '. etlle 
ment agreement aft4 aa originally 
sign e il du|'>licat e t4 t-be relea -. e t4 aU 



ami ' : 



(+s4 Aft e r recei' i ing t-be iriiilenal t-le ' cribed 
A Section 2^ I 1 Td-' i ( I M vni) abov e . t4+e 
1 Riste e shall notify t4*e Branch t+f t4*e 
amount <-4" such judgm e nt t*f '. ettlement. 
-bbe Branch . hall then in -. truct tbe owner 
t*f operator t++ pay t+* tl+e tru '. te e .. iich 
amounts. Rt+t- 1^ exceed t4te (unount h4 f4+e 



949 



SORTH CAROLISA REGISTER 



PROPOSED RULES 



judgmont Bf r . L ' ttlcmL'nt »ft4 Ae cor . tr . »f 
udmini 'i tL ' ring NfH4 lutid. «+f U^ aoK^unl si 
Af rcqiiiri ' d l'o\ ltqul', sshii,'hL" i 'er » k'oo. 
tf A« own e r Bf opLTutcir foiit^ te porform 
as requir e d l*y- Ae Bninchr . in -. tructions, 
$+H» [Jrancli '. hall iiT . taiLt A# ; . iiretv to- 
plcice fund '. H* tt+e iunount uuiiruntL'ed fof 
t+ve fut-ilit; i (iLV . ) m4o t4+e '. liuulby trust 
fund. ?4w tru '. tL ' L' !. hall pay te A*» p e r -. on 
vrho obtain e d t4*e judunient Bf- i. etllL ' nu'nt 
i. ucli cimmint h+ t4+e judgment t-vf ^ e lll e 
mont, 1*h4- fh+I- h* oxcood the cimount t4 (+k» 
fund; , ift th<* tru -. t. 

f^ I nder At^ term ' , . t»f (4^t* bond. 4»e t . uroty 
may cunLL ' l t4*e bond by- i i ondinij writt e n 
notic e el canc e lkition by- c e rt i fi e d miiil to 
t4+e (uvn e r h+ opi. ' nitor a«4 to t-b<^ Ikunch. 
('iinci. ' ll(ition mciy h+*4- tiila * l ' ITl ' cI. how 
eser. until rri- W** t+we hundred twx ' nty 
( 12(1) duyt i crftof l-ht' diitL ' H+ rL ' CL'ipt e+ tbe 
notice »f cancL ' lliition by both ti+e ow ' u e r 
f+f operator aH4 l-be l^ninch. as '. hiHi . n by 
tbe latter r e turn receipt. 

f*H -Nt* bond •■ hall be canci. ' lled without 
prior written coiT . ent t4 t-be Branch. -l-t»e 
Brcmch may agr e e to cancellation t4 t4w 
bond wheir i4- bas detemiinod toat- t4*e 
OSS ner t+F operator bas ;. ub -. l i luted alter 
nal e luKincial a '.-. urance tof liab i lit' . 



+gt» as -. p e cified m- t-b+s '. ection. (->* w hen 
it- approse *. (-be certification (-4 closure (-4 
tbr^ facilit' . '. ubmitletl purMiant to Section 
2M.11.V'" " 
f+^ Section 2^' I- 1 l"^(b) jh amende ' !.! by adding 
paragia|"ih to-> to r e ad as folloW '-. : 
++ef t-vf credit. 

^ Aft owner »f operator m«y d e mon ;. trut e 
the required coverage by obtaining aft 
irrev (U'able l e tt e r e4 cr e dit which co nformr . 
to t-bf re(-|uirenu ' nt '. t-4- (4++^ paragraph aft4 
by ■. Libmitt i nij t-be letter to toe Biiuich. 
Aft owner h+ operator rtf a new iacility 
muL ' t F . ubmit t+h» letter ef credit to t4*e 
Branch at- lea ' 4 tUi 4ays b e fore tbte dat e eft 
' I ' l Inch luij'ardou '. wa '^ te t-- b-Fst- lecei' . ed to* 
treatment, '' lorage. t-n- di -' inv - al. -l-bt» letter 
t4 credit mu -' t be eflecli' i e before (-bts iftt- 
t+al- receipt ef ha-'.ardou ' j wac i te. The isf . u 
H+g in '- titution ' ihall bt* aft entity which has 
f4+e aulhont' i to i '.'- ue leller -. (-4 cr e dit m^ 
V. ho '- e letter h4 ciedil operation '- a+e regu 
lated M^ e xiimm e d by a 1 ederal tw Stat e 
Ag e ncy. 

(4h -1-be wording ef toe l e tt e r o4 cr e dit •i liall 
bt» identical to t-be w oiding '- pecilied ift 
S e ction 2(' f 15l(m). 

f+ftf Aft owner ef operator w ho U '- e - ' . a lett e r 
ef credit to I ' ati ' . ' f' i tbe requirement '' ef 4«s 



section > ihul] ake e ii tabliiih a i . tandhy tmr . t 
fund. I 'nder tb** terms «4 t4*** letter ef 
credit, aii payment^ i made thereunder 

t4%e Branch, b^ d e po -. it e d by tbe i '' r . uing 
ini ' titution directly iftto t^ r i landby tRir . t 
fund, rhii i ' 4 and by tru - jt lund '- hall meet 
tbe requirement! ' ift Section 26 1. 1 17(b)(."!), 
e xcept that: 

ftr Aft originally .'ligned duplicate ef t4^ 
tru ' 4 agreement j. hall be L ^ ubmitted to 
tb# Branch with toe letter ef credit: im^ 
th- I ntil t4*t^ i . tandby t+ftst- furid is funded 
pur ' juant to tbe requirements ef 
261.M7(b)(5)(ix), t4*^ folUnving afe h*4- 
required: f4-^ pa; , ment H+to \^ trur . t 
fund as r . pecified ift Section 
26 I.I 17(b)(."i)(iii): (+H annual valuation - - , 
as required by t4+e trust agreement fst^ 
261.151(k)(l) S e ction V^ a«4 ton fte- 
tic e s ef nonpayment as required by to<» 
tfwst- agre e m e nt fst^ 26 1. 1 51(k)( I ) Set^ 

(-hto 44*e letter (-4 credit •- hall be accompa 
nied by a letter from t-be owner ef opera 
tof which '. hall state: 
ftr 44+e letter ef credit number: 
br 4-be name ef (-be i '-'. uing in '. titution: 
St 44)1* dal e **+" is '- uance t+f tbr» letter ef 

credit; 
4t -H+e 1 PA identificalicin numb e ri '. ) ef 

tW facilil>(i e'. ): 
er 4-b«^ ncuTi e ( '- ) a«4 addr e ss( e s) o+' (-bt* 

fiicilit; i (ies): nf^ 
ir -bbe amount f4 funds cf - sured by (-be 

letter (-4 credit. 
fv) 4-bt* letter t-4 credit shall be irres ocabl e 
aft4 shall be iss . ued fof a period ef at- least 
eftt» year unles i s at- lea '. t efte hundred 
twenty ( 1 2 (1 ) da; i '. before l-be current e^«- 
piralion diit e . tb*^' I '.'- uing iu '- titulion noti 
ftes both (+K* ow n e r ef tip e rator aft4 (+m* 
Bnmch by c e rtified mail e+ a deci '. itm ftt*t- 
to extend tbe expiration dat e . I nd e r (-be 
t e rmS ' b+ (-be letter to credit. (4*e Hftt* hun 
died aft4 twent\ (12(1) dav -- w-4f begin e» 
t+tt^ dal e w hen both tbr' ow ner h+ openitor 
iift4 t4«» Branch Ikino received tbt^ notice. 
as shown by tbe latter return rec e ipt. 
fvH '-14+e lett e r (-4 credit '. hall be i '-'- ued ift aft 
amount at- least- si* million dollar -. 
(1,6, O I K). ( 10 ( 1). t+f ;,tit4^ other lunount as Fe- 
quired by tbe- Branch pursuant to Section 

2M.1 r(c) Bf kl-fr 

fv+H tt aft ow ner h+ ojK ' ralor substitutes 
other financial as '. iirance fef luibilil;. co' i 
erage as '. pecified h4 t+as section fof aW 
©f f>rH4 ef t+»^ amotint €4 t4*e letter t4 



iS'ORTH CAROLINA REGISTER 



9.W 



PROPOSED RULES 



creJit . l+e Hwy •■ uhmit i* ' . vritlL ' n r e qiic' j. t to 
»-l+e Ikanch t+*f ruk - ii 'i L ' «4 t-htf amount »f 
At» k ' ltur f4 liolIiI ifl- l ' XCl" !!. t4 t4+e amount 
t4 roquirt'd L-o'njni ' JO to- t>e Jomou '. tratL'd 

(' f 'iii) Any por ' itm v i lio obtain i' I'inal judg 
mL'nt (+F ii L'tllumont ai!ain '' t t-ht» owiilt t*f 
operator t+*f bodily injury and or propuily 
damaUL ' cau i' L'd t»y * non ' aiddjn actidL ' Utal 
occuiTonLL ' t*f OLL;ini. ' nLi." i ari '^ inij I rem t+w 
opijralion i-4 t4+e lacilit; . may r e c|u e-. t pay 
mL'nt trom t-br* letli^r h4~ crL ' dit m- ■■ atp ' tac 
t+t+ft t4~ {4*1* judum e nt irvf ^ 'e lllijm e nt t>y 
f ' libmittina to t4w I'rut . teu': 

tLun e d i* tlnal judam e nt. » c e ilifi e d copy 

B+ (4+e ludjmont - *h4 » ■' (tUi. ' mi. ' nt. '' ijuod 

l*y tl+e claimant ■' attorn e y t-4 record t4+*t- 

ti*e judgmont wa* eith e r (-H rondo rod 

Uy- t-l+e hiLLho '' t court m ri+e jurisdiction 

V , hero At' action wa^ brouiiht »«4 A^ 

O' l Vnor t+f oporiitL'r o\haU"lod t+tt riditr . 

p4 appeal. t*f (-34 rondorod l*y- f4+e hiL:ho; ' t 

court ' I ' l hich rondorod a judy:ment tHwi 

Ht* appeal wwi mad e l*y- y+e ov i nor e* 

operator to e* hiuh e r couil v . it bin At* 

time allo' i vod tiJ»- applicable ■■ tiituto t*f 

nil e . t+f {^ kvi\\ ' l '\ \ to l*v At» ov . nor t*f 

oporiitor: t*f 

J^ -k* t4+e i?T+-ie e+ » ' ' Ottlomont. »«■ t*fl- 

ginally '. iiined duplicat e t4' t-l+e '. oltlo. 

mont agroomont r+H4 cH* oriLiin(dly 

f ' ignod duplicat e e4 Ar* roloii ' jO t4 c4i 

claims. 

t4*+ iM'tor rocoi' i ina t-l+e material described 

m- .S e ction 2^ I.I PlbK.^ic iii i abo' . e . A^ 

Tai' . tee ■■ hall notily l+ne niiuich (r4' t+h* 

amount i+f laich judgmont t-H^ ■' Ctllomont. 

4-1+e li i aiich ■■ luill then instruct (4+e in^ti 

tution is ii uing f4+e loiter rt+ credit to fWr to 

Ar' Irustoo r . uch amounts, m^ to o?icood 

Ar' amount t4' t-lw judgm e nt (-»* sottlomont 

afl4 4*r^ costs t-4" adminisionng "-rt+d I'und. 

i4f (4+T' amount b4 t+tr' required co' i oraoo. 

Vi hicho'i or \^ loss. 4-l*e 1 iii^ . too sluill fr+y 

to t4*e person v . ho obtained t4*e judgment 

&f s , i, . ttlement i. uch Limount i-4' t4+e judg - 

m e nt (*f ■ - . ^ . til e menl. b+ft- Ht+t- to exceed 4>e 

Limount e4 tunds va t+^e trust. 

f*+ W t4+e o' l vner t*f oi'i e iator di'os Ht*4- t^*- 

tablii ' h Liltomato financuil iissurunco fof 14- 

abilily CO' I oriigo rt-. roiiuirod by- (4++-- section 

aft4 lIoos Ht+t- obtain V i ritton appro' , cil 

from tfee Branch e4~ Hfty '. uch iilternato fi- 

nancial if ' surance tt*f liability co' . e rag e 

V i ithin niiiot;. (-UU+ dviys . t-4 receipt by both 

f+^e At* O' i ' i nor fH^ oportitor rm4 by- Ae 

Branch t4 rt notice t4+rri- t-ht^ issuiiiL! in -. ti 



tution "A+H- Ftot- e .vt e nd A*^ lett e r e4^ credit 
beyond t4%t* current expiration date, the 
I? ranch shall dra' . ' . ' t+ft Ae letter f4" credit. 
-l-hi* Branch may delay dra' i ' i ing tw- t4*i* 
l e tt e r trf credit tf At^ i ', s , uing institution 
grants , w* extension t*f Ae term i*f t4*t» k4- 
Wf- ef credit. During A<» 1*4 thiily (4A+ 
days ef ttfty s . uch e xt e n ' : . ion. the Branch 
ohall dra' . v en* Ae l e tt e r t+f credit tf the 
O' . ' . ner Bf- op e rator hrtt- failed to pro' . ide 
alternate financial assurance ft*f liability 
co' . orage a^ sp e cified »«• (44^ section i-h^ hrt^ 
fail e d to obtain ' . ' . ritton appro' . al by Ae 
Branch ef !. uch assurance. 
f*i4 ^^ lett e r e4^ credit shall W terminated 
' . vithout prior ' . vritten con '.e nt t4 Ae 
Branch. 44+e Branch nmy return Ae letter 
t4' credit to t4+e is . s . uing institution ft+f kH^ 
mination ' . ' . hen tht^ Branch h** d e t e r 
mined t+Kri- t4^ o' . ' . nor s* operator has 
substituted alternate tlnancial a . > . uranc e 
fe* luibilily co' . orago a-- s . pocifiod ffi- th+s 
f . oction. t*f ' ■ vh e n ri- appro' . '. Ae cert if 
icaticm t-4 clo . ' . ure e4' t4+e facility .. ubmitt e d 
pur .' Uant to Section 2(^ 1. 1 I -^." 



(4i| Section j^ 



^44h Ht am e nd e d bv addin ' : 



a Fh*w paragraph (-to to read a-r tollo' . ' . s: 
'■^4>^ 4— ^^* t*4 multipl e financial mechani '. m . s 
A« o' . ' . nor t*f operator fftay d e monstrat e 
t4+e required liability co' . erago by es . tali 
lishing more than Bflr* financial mech 
anism a-- ' pocifiod m t+H- .'e ction. 1 ho '. e 
mechanis . ms ai^* limited to trust tuiuls. 
f i urot) bond ' . , guar.intooing payment i«to 
a trust fund, letter -, t+f cr e dit, aftd ini . ur 
anc e . 44*^^ mochani '. ms mus . t be a^ Gpoci 
6e4 H* paragraph -. (44t (-rJ-y (-4y aft4 (^ t4 
tht^ .. oction. exceiit that- t+ h- Ae combi 
nation t-4' t4+e mochani .. m ' s rather thiin t4+e 
single mechanis . m. ' . shich must pro' . ide fi- 
nancial assuranc e fef a«- amount at- loa -. t 
HW million dollars ( ^.O l ^n.nflO). tf aft 
o ' i l l nor (->f operator us e-, a tni '. t fund ift 
combination ' . ' . ith a '. uret'. bond t*f a loiter 
e4' credit, be fftay h-^ t+te liTi '. t tund at. Ae 
; . tandby Im -. l fund ft+* t+^e other mech 
ani -i in -. . A i . inLile i. landby tru -. t fund may 
be established ft+f to-t* t-vf more mech 
anism - s 4+ie Branch ma>' »^e m^ aft4 a44 
e4 t4ie mechanisms to pro' , ide ft*f non 
sudden accidental occurrences liability 
CO' , orago tof t4+e Incility." 
(-4% Section 2<' I I l~ i^ amended by adding a 

Hew- paragj'aph (4*4 to Fe«4 a* foIlo' . ' i C . : 
^4*4 Coqiorato guarantee fof liability cov e r 



(-44 Subject to subp.inigraph h54T an- ov . nor 
t+f operator may moot t4^ requu e m e nls 



951 



XORTH CAROLINA REGISTER 



PROPOSED RULES 



&f A» ' . (jotion hf obtaining a V r ritton 
guiirunlL'L ' heroaftLT ro furred te a* corpo 
Frrte uimrant ee .' 44>e guiirantor mur . t be 
Ae par e nt corporution ef A*» ownur ef 
operator r» dclinud m- S e ction 26 ' l. M()(d). 
4-h*» (juarantor mu ; it mcot Ae reqiiiro 
m e at -I fe* ovvnero tvf operators i» para 
graphs (0(1) through (^ e+" this Section. 
The wording ef t4+e corporate guarantee 
mui . t t>t* identical k» the vsording specil'ied 
» S e ction 36 1. I51(n). A certified copy 
ef f-ht* corporat e guarant ee muiit accom 
pany the items setrt te- the Branch a* 
specified i» panigraph (f)(,l) Bf tl4* Set^ 
tion. '44+e teniT . o+ l-he corporate guaran 
k»e must pro' i ide that: 

(+^ 44- the o' l ' i ner (-h= operator fo4s to satis . fy 
a- judgment has e d »» a detemiination »f 
liability fevf bodily injury and or property 
damage tB- third parti e s caused by sudden 
e* nonsudden accidentid (Kcun e nc e s fnf 
both, a^ the e*^ may ht4T ari '. ing from the 
op e riition h+ lacilities covered h¥ tht^ trBi^ 
ptKcit e guarantee. Bf fa+k tB- pay a«- 
amount iigreed tB h* 'l ettlement b4- claims 
arising from Bf alleged tB (4^^ from such 
injury bf dcunage. the guarantor w+H- 4b so 
Hf* tB the limits Bf cov erage. 

(-H-^ 4-he coiyorate guarantee w+h remain m- 
forc e unless , the guarantor !. ends notice Bf 
cancellati(Mi hv certified mail tB the o' . vner 



Bf op e rator aH4 tB the ijranch. 

guarantee may HBt he terminated unles .' ' . 

aH4 until the Branch approv e s alternate 

liability c(H e raL! e compKinij wtth Section 

261. 117 and or^26,Vl 17. " 
A Corporate guaiimteo may he used tB 
ati fi fy the requirement '. Bf th+s section 
i+ the attorney ueneral bf insuranc e 



^ 



comiui '.'. ioner Bf the stiil e i+f V i hich the 
guarantor Vy inco i porated itvt^ Bf th+^ s . tat e 
' . ' ■' h e n a facility co' i ered hy the guarant ee 
» located H+ North Carol i na, hatr submit 
te4 a ' ■ s'ritten stat e m e nt tB the Uianch that 
a corporat e guaiiintee executed a*, de- 
sciibed t«- thts -. ection M:^ Section 
26 . |. 151(n) it- a legally valid aft4 enforcea 
hfe obligation *«■ that stat e ." 
(-2% Section 26 I. M7 i^ amended hy- adding a 
ne' i V" paragra|Th f+^ tB read a* follo' i vs: 
^^fi-^ Notice Bf claim. 4-he ov. ner Bf opera 

♦ -"A T- fi \ , \ ■ . , ■ 1-t r • I . • < I I i t - . Vl ■ 1 1 1 ■ ■ « t ■ . t ^ 1 ■ fl t f .. 1 T1 n / -1 t ■ , -. 1 

iv ' I yft cmTTTT 1 iJ. V I T 1 1 T rmnTT ^t r \^ n i 1 1 1 v i t i i t ' r it, v- 

tB the n ranch Bf e' .e iy claim fBf bodily 
injuP i and or prop e rty damage cau '.e d hy 
a sudden and (^r non '. udden accidental 
occurience Bf occurrences ari '. ing from the 
operation Bf the facil i ly(ie '. ). 44+e o' . ' i iier 
Bf operator Bf e ach facility shall gjve such 



notice tB the [Jranch as so cm as poss . ible 
afni ift rȴy- o' . ent hb- lat e r than thirty (40) 
days alter learning ef such claim. 44te 
o' l Vner Bf operator Bf e ach facility s . hall 
give writt e n ncttice tB the branch ef evefy 
judgment against the o' . ' . ner Bf operator 
fBf bodil) injury and or property damage 
cau !. od hy a s . udden Bf nonsudden acci 
d e ntal occurrence bf occurr e nc e s arising 
from the op e ration Bf the facility(ies). 
44*e tn' . n e r Bf operator Bf e ach facility 
shall gJ¥e such notice tB the Branch as 
soon as possible afni m- afty event bb- later 
thaft thirty (4tt) d«ys affef learning Bf wh4 
judgment. -P+e own e r Bf op e rator Bf each 
facilit) shall submit tB the branch a copy 
Bf e ' .e ry judgm e nt against the ov i ner Bf 
op e rator fBf bodily injury and or prop e rty 
damage caused hy a ' . . udden and or non 
sudden accidental occurrence bf occur 
rence *. ari '. ing from the oii e nition Bf t4*e 
facility(ie '. ). 44*e (Hvn e r bf operator Bf 
e ach lacility '. hall '. ubmit a copy Bf '. uch 
judgment tB the Branch as soon as po '.'. i 
hfe aft4 i» afty event h*> lat e r thaw- thirty 
(40) days after receiving a copy thereof." 

(4f) Section 26 1. 1 17 f^. amended hy adding a 
Ftevr pariigriiph (t+ tB Fea4 as follovv i : 

'■^^ continuous coverage. Ah- owner Bf Bf>- 
enitor mu !. t c(mtinu(Hi '. ly provide liability 
coverage h+f a facility as required hy th+s 
section until notified that he fs hb- longer 
required tB maintain liability cov erage h+r- 
that facility m accordance ' . v ith Sectitm 
26 1. 1 17(e|. -ff the owner Bf operator fatfs 
tB submit e v idence Bf liability c(nerage as 
r e quir e d hy Section 26 1. M7 a«4 tB obliiin 
from the Branch approv iil Bf such cov e r 
aee before the expiration Bf the current U- 
ability coverage, the own e r Bf operator 
shall c e as e treatm e nt, storage. Bf dis|iosal 
Bf ha/iirdous vvoste at the facility until h- 
nbility coverage is demonstrated tB a»4 
ap[iroved hy the Branch." 

Suuiaoty Authority G.S. l30A-294(c). 

.OO.U IMKKIM SI.Ml S STAND AKDS KOK 
I'l RMII IING - I'ARI 270 

(b) I'hc following provisions for additional 
pcmiitting requirements contained in 40 CTR 
270 (Subpart B, Permit Application) have been 
adopted by reference in accordance with Ci.S. 
13()B-14(c/. 

(1) 40 CTR 270.10, General Application 
Requirements; 

(2) 40 CFR 270.11. Signatories to Permit 
.Applications and Reports; 



NORTH CAROLINA REGISTER 



952 



PROPOSED RULES 



(3) 40 CFR 270.12, Confidentiality of Infor- 
mation: 

(4) 40 CFR 270.13, Contents of Part A of the 
Permit Applications; 

(5) 40 CFR 270.14, Contents of Part B 
General Requirements; 

(6) 40 CFR 270.15, Specific Part B Infor- 
mation Requirements for Containers; 

(7) 40 CFR 270.16, Specific Part B Infor- 
mation Requirements for 1 anks: 

(8) 40 CFR 270.17, Specific Part B Infor- 
mation Requirements for Surface 
Impoundments; 

(9) 40 CFR 270. IS, Specific Part B Infor- 
mation Requirements for Waste Piles; 

(10) 40 CFR 270.19, Specific Part B Infor- 
mation Requirements for Incinerators; 

(11) 40 CFR 270.20, Specific Part B Infor- 
mation Requirements for landfill Land 
Treatment Facilities. 

(12) 40 CFR 2''0.21, Specific Part B Inlbr- 
mation Requirements for Land Treatment 
Facilities Landfill. 

(13) 40 CFR 270.23 Specific Part B infonna- 
tion requirements for miscellaneous units; 

(14) 40 CFR 270.29 Permit Denial; 

(15) The following are additional specific Part 
B information requirements for all treat- 
ment, storage or disposal facilities; 

(A) A description and documentation of the 
public meetings as required in 10 NCAC 
lOF .0032(q)(7); 

(B) A descnption of the h\drological and 
geological properties of the site including, 
as a minimum, flood plains, depth to wa- 
ter table, ground water trasel time, sea- 
sonal and longterm gi'oundwater level 
fluctuations, proxmiity to public water 
supph' watersheds, consolidated rock, soil 
pH, soil cation exchange capacity, soil 
characteristics and composition and 
permeability, existence of cavernous 
bedrock and seismic acti\ity, slope, mines, 
climate, location and withdrawal rates of 
surface water users within the immediate 
drainage basin and well water users w ithin 
a one mile radius of the facility: water 
quality information of both surl'ace and 
groundwater within 1000 ft. of the facility, 
and a description of the local air quality; 

(C) .A description of the facilit\'s proximity 
to and potential impact on wetlands, en- 
dangered species habitats, parks, forests, 
wilderness areas, historical sites, mines, 
and air qualit\": 

(D) .-V description of local land use includ- 
ine residential, industrial, commercial. 



recreational, agricultural and the proxim- 
ity to schools and airports; 

(E) A description of the proximity of the 
facility to waste generators and population 
centers; a description of the method of 
waste transportation; the comments of the 
local community and state transportation 
authority on the proposed route, and 
route safety. Comments should include 
proposed altcmati\e routes and re- 
strictions necessaPi' to protect the public 
health; 

(F) A description of facility aesthetic factors 
including visibihty, appearance, and noise 
level; 

(G| A description of any other objective 
factors that the Department of Humcm 
Ro '. ourcj '' Fn\ironment. Health, and Na- 
tural Resources determines are reasonably 
related and relevant to the proper siting 
and operation of the facility; 

( 16) The following are additional specific Part 
B information requirements for comprL ' 
honoi' i o hazardous waste troatmont dis- 
posal facilities; 

(A) A description of the local zoning sur- 
rounding the facHit},'; 

(B) A description of the buffer zones sur- 
rounding the facility; 

(C) .\ description of the a\ai[abilit\" of util- 
ities to the facility; 

(D) A description of the availability of ci\il 
defense ser\"ices to the facility; 

(E) A description of the fire safety of the 
facility; 

(F) A description of access into the facility, 
and the existing and proposed road net- 
work around the facility; 

(G) The distance from the facility to the 
nearest polychlorinated biphen_\'l landfill 
facility and hazardous waste landfdl facil- 
ity; 

(II) A description of the procedures that 
wiU be employed to ensure that hazardous 
waste shall not be stored for o%er 90 daxi 
prior to treatment or disposal; 

(I) A description of any other objecti\"e 
factors that the Department of Human 
Rijoourcoo Fn\'ironmcnt. Health, and Na- 
tural Resources determines are reasonably 
related and relevant to the proper siting 
and operation of the facilit\': 

(17) Lhe following are additional Specific Part 
B Information Requirements tor I ona 
1 erm R e tri e ' . ubl e Storage. I ong iLM'm 
StorugL' FiKilitiL' '. **f Hazardous Waste 
Lundfilk' . ; Disposal Facilities; 



9.>.-( 



SORTH CAROLISA REGISTER 



PROPOSED RULES 



(A) The owners and operators must provide 
the foUowing information about the waste 
and underground storage of either a haz- 
ardous waste landfill ©f long torm ntorag s 
disposal facility: 

(i) Design drawings and specifications of 
the leachate collection and removal 
system; 
(ii) Design drawings and specifications 

of the artificial impervious liner; 
(iii) Design drawings and specifications 
of the clay or clay-like hner below the 
artificial liner, and a description of the 
permeability of the clay or clay-like 
liner; 
(iv) A description of how hazardous 
wastes will be treated prior to place- 
ment in the facility as required in 10 
NCAC lOF .n032(o)(2)(B). 
(4^ I ong term rt ' lric" i ublL ' r . toragL ' faciliti e s 
mu 'i t provide d e sign drawings c«+4 spocifi 
cations ef t4+e lighting, ccmunt fioor '. , 
shoKx's, platforms, inspection 

passagc'svays, ventilation syst e m, monitor 
iftg !. ystL ' tn. i*ft4 s . afety *h4 '. ocurity prec 
autions. rtH4 * d e scription b4' \¥^¥*r i i Vd '. lLVi 
w+W bt» protect e d from A*» ' ■ scat her tt«4 
vvhiTL ' i i vas . t e identification w+W l*e pkicod; 
(18) "I he following are additional Specific Part 
B Information requirements for Surface 
Impoundments: 

(A) Design drawings and specifications of 
the leachate collection and removal sys- 
tem; 

(B) Design drawings and specifications of 
all artificial impervious liners; 

(C) Design drawings and specifications of 
all clay or clay-like liners and a description 
of the clay or clay-like liner; 

(D) Design drawings and specifications that 
show that the facility has been constructed 
in a manner that will prevent landsliding, 
slippage, or slumping. 



Slatutmy Auihorttv G.S. 
l30A-295{a}(l) and'(2). 



l30A-294(c): 



.OO.W KKC^ CI.MU.E M.U KRIAI.S - PARI 266 

(a) The follo' i ' . 'ing provisions for recyclable 
materials used in a manner constituting disposal 
contained in 40 CFR 266.20 to 266.23^ (Subpart 
C) have been adopted by reference in accordance 
with G.S. 150B- 14(c). 

(b) The I'oUosving prosisions for "Hazardous 
Waste Burned for linergy Recoveiy" contained 
in 40 CVK 266.30 to 266.36 (Subpart D) have 
been adopted bv reference in accordance with 
G.S. 150B- 14(c).' 



(c) The following provision for "Used Oil 
Burned for linergy Recovery" contained in 40 
Cl'R 266.40 to 266.44 (Subpart E) have been 
adopted by reference in accordance with G.S. 
1 508- 14(c). 

(d) The following provision for Recyclable 
Materials Utilized for Precious Metal Recovery 
contained in 40 CFR 266.70 (Subpart F) have 
been adopted by reference in accordance with 
G.S. 150B- 14(c). 

(e) The follovsing provisions for Spent Lead- 
Acid Batteries being reclaimed contained in 40 
CFR 266.80 (Subpart G) have been adopted by 
reference in accordance with G.S. 1 SOB- 14(c). 

Statulon> Authority G.S. 1 30.\-294(c). 

.0040 IM HI.IC IM OKM ATION - PART 2 

(a) Fhe follo' . s ing pro* ! ision provisions con- 
cerning rec|uests for information in 40 CFR 2. 100 
to 2.120 (Subpart A) have been adopted by ref- 
erence in accordance with G.S. 15()B- 14(c), ex- 
cept that 40 (T R 2.100 (a) is not adopted bv 
reference. 

( 1 ) The followina shall be substituted for the 
prcnisions o| 40 CFR 2. 100 (a) which are 
not adopted by reference: 

(2) Definitions. 

(A) "IT'A • means the I nited States Fnvi- 
ronmental Protection Aeencv. 



(B) "Department ot F'n\ ironment, I lealth. 
and Nat viral Resources" shall be substi- 
tuted tor "Fn\ironmental Protection 
Agency" and "1 lazard(His Waste Section 
Chief in the Stolid Waste Management 
Dnision o\_ the Department of I nx iron- 
ment, 1 lealth, and Natural Resources" 
shall be substituted for ".Administrator", 



"Reiiional Administrator" and 

"Director", except in ihtvse situations 
where authont\ has not been delegated to 
the Slate ot N.C. or unless the ccintext 
requires a di He rent meaning. 
(C) "Section" means the N.C. I la/ardous 
Waste Section, rn the Di\ ision of Si^lid 
Waste Manaizement, Department ot 1 n - 
vironment. Health, and Natural Re- 



(D) "Section Officer" means the person 
desimiateii b\ the Section Cliief to this 



actuitv. 



(I') "Section Atto 
desiiznated 



lev" means the person 
^\' the Section Chief to do this 



activitv. 



(F) Section Officer shall be substituted for 
the freedom of information olficer. 



(G) "N.(\ I la/ardous Waste Section Public 
Afiairs Director" shall be substituted t\)r 



NORTH C.iROLI!\A REGISTER 



954 



PROPOSED RULES 



the I'I'A f^irector of the OfTice of Public 
Affairs. 



(H) "NX'. Hazardous Waste Section 
Olfice" shall he suhstituted for Rcaonal 
1 l'.\ Office or 1 I'A Ikanch Olfice. 



(I) 'Department" means N.C. Department 
of ln\ironment. Health, and Natural Re- 



sources. 



(.1) "Section Fmplo\ee" shall be suhstituted 

for lii'A I'mpknee. 
(K) "Section I egal Office" shall be the 

Section .\ttomev. 



(b) The fulknving provi 'i ion provisions con- 
cemin2 conlldentialitv of business information in 
40 CFR 2.201 to 2.30 (Subpart B) have been 
adopted bv reference in accordance with G.S. 
150B-14(cl". except that 40 CI R 2.20^ (h)_ and 
(c). 2. .^01. 2.302. 2.31)3. 2.304. 2.306. 2.30^. 2.3l)X 
and 2.30'^) are not adopted bv reference. 

Stdtutoty Authority G.S. /30A-294{cj. 

.0042 L.VND DISPOSAL RESTRICTIONS 
- PART 268 

(a) Ihe "General'' pro\isions contained in 40 
CFR 268.1 to 268.13 (Subpart A) have been 
adopted bv reference in accordance with G.S. 
150B- 14(c). 

(b) 1 he "Froliibitions on Fand Disposal" pro- 
visions contained m 40 CFR 268.30 to 26S.33 
268.34 (Subpart C) have been adopted by refer- 
ence in accordance with G.S. 150B- 14(c). 

(c) The "Treatment Standards" pro\isions 
contained m 40 CFR 268.40 to 268.44 (Subpart 
D) have been adopted by reference in accordance 
with G.S. 150B- 14(c). 

(d) I he "Prohibitions on Storase" pro%isions 
contamed m 40 CFR 268.50 (Subpart F) have 
been adopted bv reference in accordance with 
G.S. 150B- 14(c).' 

(e) Appendices I tt«4 to III contained in 40 
CFR 268 have been adopted by reference in ac- 
cordance with G.S. 150B- 14(c).' 

Stiitutofy Authority G.S. I3UA-294(c). 

SI HCIIAPTFiR lOG -SOLID \\ .VSTE 
M.VNAGEMENT 

SECTION .O^^OO - SEPTAC.E MANAGEMENT 

.0902 DE FIN I LIONS 

1 he follouing definitions shall appl\' throuiLh- 
out this Section: 

(1) "Department" means the DL ' partnK ' iU t+f 
1 lumiin Ro '^ ourco '' : Department of 1 m iron- 
ment. 1 leallh. and Natural Resources: 

f4+ "Soptiiat. ' " iiUMU '. '■ epliii!!.' tt^ dolincd h% G.S. 
1 30 A 2'^0( 16a): 



(2) "Place of business" means anv store, ware- 
house, manufacturing establishment, place 
of amusement or recreation, ser\ice station, 
food handlini; establishment, or an\ other 
place where people work or are servecL 

(3) "Place of public assembly" means anv 
fairiiround, auditonum. stadium, church. 



(7 



campuound, theater, school, or an\^ other 
place uhere people gather or congregate. 

(4) "Residence" means an\ home, hotel, motel, 
summer camp, labor work camp, mobile 
home, dwelling unit in a multiple-famiK' 
structure, or anv other place where people 
reside. 

(5) "Rock" means the consolidated or partiallv 
consolidated mineral matter or aggregate, 
including bedrock or weathered rock, not 
exhibiting the properties of soil. 

(6) "Septage" means a waste that is a fluid 
mixture of untreated and partialh treated 
sewage solids, liquids and sludge of human 
or domestic oridn which is remo\ed Irom a 
septic tank s\ stem. 

frH "Septage management firm" means 

septaae manasement firm as defined in G.S. 
130A'^2Q0(16b). 
(8) "Soil" means the unconsolidated mineral 
and tiruanic material ^2^ the land surtace. \X 
consists ot^ sand, silt, and cla\ minerals and 
\anable amount of organic matenals. 
f 'j) "Soil textiiral classes" means soil classifica- 
tion based upon si/e distribution of mineral 
particles in the fine-earth fraction less than 
two millimeters in diameter. The fine-earth 
fraction includes sand (2.0 - 0.05 mm m 
si/e). silt (0.0.^ ' mm ^ 0.002 mm), and cla\ 
(less than 0.002 mm in si/e) particles, fhe 
specific textural classes are defined as fol- 
lows: 
(a) "Sand" means soil material that contains 
£5 percent or more ot sand: the percentage 
of siU plus 1.5 times the percentage ot^ clav 
s hall not exceed 15: 
i,oam\' sand" means soil material that 
at_ the upper limit ^ to 211 pcr- 



(b) 



contains 



cent sand, and the percentage silt plus 1.5 
times the percent a'jc o[ cla\' is not less 
than 15: at the lower limit \\_ contains not 
less than 212 l£ M Percent sand, and the 
percentage of Mlt_ plus twice the percentai:e 
ot cla\ does not exceed 30: 
(c) "Sand\ loam" means scul material that 
contains either 20 percent lav or less, and 
the percentage of sij_[ plus twice the per- 
centage ot^ cla\ exceeds 30. and contains 
52 percent or more sand: or less than 7 
percent clav. less than 50 percent silt, and 
between 43 and 52 percent sand: 



955 



AORTH CAROLL\A REGISTER 



PROPOSED RULES 



m 

(hi 

(11 

01 



ioam" means soil material that contains 



7 to 27 percent clay. 28 to 50 percent silt, 
and less than 52 percent sand; 
"Silt loam" means soil material that con- 
tains 50 percent or more silt and 12 to 27 
percent clav; or contains 50 to 80 percent 
silt and less than 12 percent cla\ ; 
''Silt" means soil material that contains 80 
percent or more silt and less than 12 per- 
cent cla\'; 

"Sand\ cla\' loam" means soil material 
that contains 20 to 35 percent cla\ . less 
than 28 percent siJt, and 45 percent or 
more sand: 

"(Hav loam" means soil material that 



contains 27 to 40 percent cla\' and 20 to 
45 percent sand: 

"Silt\ cla\ kxim" means soil material that 
contains 27 to 40 percent clav and less 
than 20 percent sand: 

"Sand\' cla\ " means soil material that 
contains 35 percent or more cla\' and 45 
percent or more s:ind; 

\Silt\ cla\ " means soil material that con- 
tains 40 percent or more clav and 40 per- 
cent or more silt; 

"(,da\ " means soil material that contains 
\'. less than 45 per- 



40 percent or more claw 

cent sand, and less than 40 percent sUt. 

Statutoiy Auihority G.S. I30A-29I.I. 

.0904 FKKS 

C\'ePv- septage management firms shall pay an 
annual fee by January I of each \ear in accord- 
ance with G.S. 130A-29 1.1(e). Pecs shall be paid 
to the Septage .Management Program. Rranch. 
Solid Waste " nranch. ^ Section P.O. Box imh 
27687, Raleigli, N.C. ¥imir 27611-7687. 

Statutory Authority G.S. J 30-20/./. 

.0905 SKIT VGK DISPOSAl. SI IK PKRMHS 

(a) No septage disposal site shall be used for 
the disposal of septage unless the site is pennittcd 
by the department. 

(b) All septage disposal sites in operation on 
Januar\' 1, 1989 are deemed permitted until Jan- 
uar>" 1, 1991, under the following conditions: 

( 1 ) if a county has an ordinance that estab- 
lished standards for septage disposal sites, 
a site mu '. t sh.ill meet those standards; and 



(2) 
(3) 



this site is operated in such a manner that 
a public health hazard is not created. 
I'o continue disposal of septage on a site 
on or after .lanuan" 1. 1991, the owner or 
the person in control of the site mu ' .il shall 



have applied for and received a permit 
from the department. 

(c) To commence disposal of septage on a site 
not in operation on January 1, 1989, the owner 
or the person in control of the site mu i. t shall 
have applied for and recei\ed a permit from the 
department. 

(d) To apply for a permit for a septage disposal 
site, the owner or the person in control of the site 
shaU submit the following information to the 
department: 

( 1) the location of the site; 

(2) the name, address, and phone number of 
the owner or person in control of the site; 

(3) the size of the site; 

(4) the estimated annual application of 
septage in gallons; 

(5) the uses of the site for other than septage 
disposal; 

(6) the substances other than septage previ- 
ously disposed of at this location, and the 
amounts of other substances; 

(7) the method of storage or disposal of 
septage during ad\erse weather condi- 
tions: 

(8) the method of incoqioration, and any 
pretreatment methods, used for septage 
disposal; 

(9) the ec]uipment used at the site; 

(10) a written report that documents compli- 
ance with Rules .0907 through .0911 of 
this Section; and 

(11) other pertinent information. 

(e) If a special inxestiiiation shows that site 
management practices can be utilized to o\er- 
ccnne the site restrictions in ■0')07 (a)(2)(B). a 
pemiit ma\ be issued under the following condi- 
tions: 

( 1) "I he site shall be maintained and operated 
in a manner which will pr<Uect the as- 
signed \\:iter qualit\ st,indaids oi_ the sur- 
fiee waters and ground waters; 

(2) Water table monitonnL: wells sh:ill be in- 
stalled, maintained :ind mc'nitoied bv the 
site operator a[ locations approxed bv the 
nepartment. Ilic well identification 
number, date of me:isuremenl sampling, 
and depth to the seasonally high water 
table shall be recorded in a monitonng 
well loiz. .Minimum depths to tjie sca- 
sonallv hieh w;iter table, the nunuloniiL! 



(3) 



samp] ill'-' lrec]iiencies. or an\ other re- 
quired d.ita. will be specified on the Per- 
mit to (.)per:ite a Septage Disposal Site: 
In the e\ent that the water table nmnitor- 



ing progr:im is not conducted according 
lo, t_he pennit requirements, the oper;itoi' 
shall cease appK ing septage to the site. 



NORTH CAROLINA REGLSTER 



956 



PROPOSED RULES 



The operator will cease the application of 
septau4e it there is evidence of 
{rroundwater or surface water contam- 
ination, 
(f) /\n annual septage loading rate (gallons per 
acre per year) will he specified hv the Depart- 
ment. I he nutrient and metal status ot the soils, 
site h\draulic constraints, nutncnt demand oj^ the 
crop to be grown and the potential en\iron- 
mental impact of the operation will be considered 
when the annual loading rate is determined. 

Shimmy Aulhority G.S. I30A-29I.I. 

.0W7 LOCATION OF SFPTAGE DISPOSAL 
SITES 

fa^ Sandy aoihi o' l L ' rh i ing wt uncoiilin e d ac|uit e r 
shall »e+ h^ ur . od ff* 4k* di '' pn 'f al «4' i. optagL ' hh- 
ie^ ft minimum «+f three' fo*f e4' '. epuration uxiL ' to 
botV i OL'n At* puint t+f '. L ' ptaui. ' application et«4 t4» 
naturally occurring '■e ci '. onally high ' . vater table ' . 

(4^ Soptag e ki«4 application M+er -. hall fh+4- be 
located ift the watershed »f » Clar . ii J- »f Cla -. s H- 
roi ' L ' P i oir evf i+i- Ae ' i sal e r^h e tl h4-' t4*e portion (*f a 
Cla -. ' ' \\"S 111 '. trL ' am extending Irom a Chi '.' ' . 1- 
rL" ' L'P i oir k+ a dnv . n 'i lri. ' am intala ' a+ a ' . ' . at e r p«- 
rification plant. 1 hi ', roquircmont becomc i. e^ 
foctiv s wht ' UL ' SL ' r fund; , have been appropriated 
cither f»f purcha '. c ^" land tH= con -. tniction t*f a 
Clar .;. I tvf ("la '.'. H- rL" . L'r i dir. I hi -, prohib i tion 
doL" . FM+t- apply ^ thcv i L' portion '. h+ a V i (iti. ' r '. up 
f4y- re '. LT' i dir ' i VatLT -i hed which afe drained by 
Class G streamr . . 

(a) Soil Characteristics (\lorpholog\ ) - The 
soil charactenstics which shall be e\aluated are 
as follows: 



( 1 ) Texture - The relatise proportions of the 
sand, silt, and cla\ -si/ed mineral particles 
in the tine-earth traction ot the soil are 
relerred to as soil texture. Ihe texture of 
the dilterent hcm/ons ol^ soils shall be 
classified into three general groups and 12 
soil textural classes based upon the rela- 
ti\e proportions of sand, silt, and clav- 
sized mineral particles. 
(A| SCML CROl P \ - S.AND^' It X- 
IT Rl son S: 1 he sand\ group includes 
the sani.1 and loam\ santi textural classes. 



(B) 



soil c;Ror 



II 



COARSF. 



I 0A\n" AM) MM 1 o.wn' n X- 

riRi; SOUS: Ihe coarse loamv and 



find loam\' gnnip includes sand\ loam, 
loam, silt, silt loam, sandy cl:i\" loam, clav 
loam, and silt\" cla\ loam textLiral classes. 



(Ci soil CiRori' ill - (I AMA' II X- 
1 TRI soil S: The'clavev group nv 
eludes saiuK' cla\ . siltv clav, and clav 
textural classes. 



(D) rhe soil textural class shall be deter- 
mined in the field bv hand texturing sam- 



ples of each soil hon/.on in the soil profile 

using the following criteria: 

(i) Sand: Sand has a ,gntt\' feel, does not 
stain the fingers, and does not f(>rm a 
ribbon or ball when wet or moist: 

(ii) I oamy Sand: I oamv sand has a 
.gritt\' feel, stains the fingers (silt and 
clav). forms a weak ball, and cannot be 
handled without breaking; 



(iii) Sandy I oam: Sandv loam has a 
,gritt\ feel and forms a ball that can be 
picked up with the fingers and handled 
with care without breaking; 

(iv) 1 oam: I oam ma\' ha\e a slightlv 



gntt\ leel but does not 
hngerpnnt and forms onlv 



show a 
vhort rib- 



bons of from ().2.s inch to 0.5(1 inch in 
length. I oam will lorm a ball that can 
be handled without breaking; 



(v) Silt loam: Silt loam has a flour\' feel 
when when moist and \\ ill show a 
fingerpnnt but will not nbbon and 
forms onh a weak ball; 

(vi) Silt: Silt has a tlinirv feel when moist 
and sticky when wet but will not ribbon 
and lonns a ball th.it will tolerate some 
handling; 



(\ii) Sands Clav I oam: Sandv cla\ loam 



has a gritty feel but contains enough 
clay to form a hrm ball and iTia\' nbbon 
to form 0.75 inch to one-inch long 



_ "-75 
pieces; 
(viii) Siltv Clav I oam; 



Siltv clav loam 

is sticky when moist and will ribbon 
from one to two inches. Rubbing siltN' 
cla\ loam with the thumbnail pnHluces 
a m(^derate sheen. Silt\ cla\ loam 
produces a distinct fingerpnnt; 

(ix) Cla\ I oam: Cla\ loam ^^ sticky 
when moist. Clay loani torms a thin 
nbbon of one to two inches m length 
and produces a slight sheen when 
nibbed with the thumbnail. Clav loam 
produces a nondistinct lingerpnnt; 

(x) Sandv Cla\ : Sand\' clav is plastic. 



grittN and sticks when moist and lorms 



a linn ball and produces a thin nbbon 
to oser tw(i inches m length; 
(xi) Siltv Cla\ : Silts clas is both plastic 
and sticks when moist and lacks :ins 
gritts' teeling. Silts clas' torms a ball 
aiul readils ribbons to oser two inches 
in length; 



(xii) Clav: Clas' is bc^th slicks and plastic 
s\ hen moist, protluces a thin ribbon 
over tss'o inches m length, produces a 



957 



SORTH CAROLINA REGISTER 



PROPOSED RULES 



high sheen when rubbed with the 
thumbnail, and lomis a strong ball re- 
sistant Ui hreakmg. 
(F) I .aboratory determination of the soil 
textural class as defined in these rules by 
particle-si/.e analysis ot^^ the fine-earth 
fraction (less than 

2.0 mm in size ) using the sand, silt and 
c\a\ particle sizes as defined m these niles 
may be substituted for field testing when 
conducted in accordance uith A.S TM 
(Amcncan Society for I esting and Mate- 



rials) D-422 procedures for sieve and 
hydrometer analyses which are hereby- 
adopted by reference in accordance with 
(i.S. 150IM4(c). I "or fine loamy and 
cla\ey soils (Ciroups ]_[ and 111 ) the 
dispersion time shall be increased to 1 2 
hours. Copies ma\ be inspected in and 
copies obtained from the Department of 
l"n\ironment. Health, and Natural Re- 
sources. Division o[ .S()lid Waste Man- 
agement. !'. O. l5o\ 27hl 1-76X7. Raleigh. 



NC 2761 1-76S7. 
(2) Wetness Condition: 

(A) Soil wetness conditions caused bv a 
seasonal high-water table, perched water 
table, tidal water. <2r seastinalh' saturated 
soils shall be determined h\ observation 



ot^^ cok^rs of chroma 2 or less ( Munsell 
color chart ) in m(Mtles or a solid mass. 
n^ drainage moi.lifications ha\e been made, 
the s(m1 wetness conditions maN' be deter- 
mined by direct obser\'alion of the water 
surface during periods o\_ t\ picalK' high 
water eleyations. 1 iowexer. colors of 



chroma 2 



less which are relic from 



minerals o^ the parent material shall not 

he considered indicatiye o[ a soil wetness 

condition. 
: B) The reciuired depth to a s()il wetness 

ct^ndition i^^ determined by the Soil Ciroup 

iextural Classification. 

(i) So\\ (iroup I soils shall be considered 
suitable where soil wetness conditi(Mis 
are greater than 36 inches below the 
point ot sept age applicatuMi or incor- 
poration. 

(ii) Soil Ciroup II soils shall be considered 
suitable where soil wetness conditions 
are greater than 24 inches below the 
point o[ septagc application or incor- 
poration. 

(iii) Soil Ciroup 111 soil s shall be consid- 



ered suitable where sc)il wetness condi- 
tions are greater than 12 inches below 



the point of seiitage application or in- 
corporation. 



{C) Soils which do not meet the required 
depths to a soil wetness condition shall 
be considered unsuitable and septagc shall 
not be applied, unless the required sepa- 
ration distances can be maintained. Wa- 
ter table monit(>ring wells ma\ be utilized 
to determine the actual depth to a soil 
wetness condition. 
(3) Depth to Rock: Soil depth shall be con- 
sidered suitable where depth to rock is 
greater than 24 inches below the point of 
sept age application or incorporation, 
(b) Septagc disposal sites shaU not be located 
m th£ watershed of a CHass I or C?lass H reservoir 
or in the watershed of the portion of an\ stream 
extending from a Class I reser\'oir to a down- 
stream intake at a water punllcation plant. This 
prohibition does not appK' to ihose portions of 
a water supply reser\oir watershed which are 
drained bv Cdass B or Cdass C streams. Ihis re- 
quirement becomes effect i\e whene\er funds 
ha\e been appropriated either for purchase of 
land or construction of a Class 1 or Class H res- 



(c) All septagc disposal sites shall be located at 
least the minimum distance specified for the fol- 
l(5wing: 

(-4^ privat e di i sellingr . rtH4 indi' i idual potablo 

' .'. atcr 'l Upply well. -^iW {t»e4^ 
{ii coinmunitv i . upplv vsell. -^UO feet ; 
^ waten . cki -.'. ified WS HI. WS 1 1 1 B . t»f ^■;At 

^^^^^ ^^^^^^y CT^^^j 

f4^ i+HV other stre;mi. canal, mar^ . h. coa '. tal 
vsater. ktke t*F impoundment. -^W feol. 
f*H -^^ '. eptage di -i por . al sfte n . hall bf locatc ' d 
up j. lop e ©f a potciblo wQtor '. upply r . pring. 

( 1 ) Pri\"ate residence, place of business, or 
place of public assembhy under separate 
ownership - ,^(K) feet; 

(2) Potable water supply well or potable water 
suppK si-iring - 5l)(l leel : 
Suriace waters. Stream classification shall 



iii 



be determined 



accordance w ilh 1 ,^ 

NCAC 2B .0300- .0311 Assignment ot' 
Stream Classifications, which is hereb\" 



adopted bv reference ui accordance with 
C.S. I.^OiM4(c); 
( /\ ) Fresh waters: 

(i) Class I. II, and ill resenoirs as defined 
in ]0 \C.\C lOD .0700 - Protection oi' 
Pri\ate Water Supplies, which is hereb\ 



121 



adopted by reference in accordance w ith 
Ci.S. 130B- 14(c) - 500 teet, 
(li) Class WS-I. ("'lass WS-II. or Class 



WS-III streams - 300 leet; 
(lii) Class B stream - 300 feet: 
(iv) Class C stream - 200 feet; 



NORTH CAROLINA REGISTER 



95S 



PROPOSED RULES 



til 
ill 



(v) Other streams and bodies of water - 
2nOfeet. 

(B) Tidal salt waters: 

(n Class SA or Class SB - 300 feet from 

mean high water mark; 
(li) (riass SC and other coastal waters -_ 

200 feet from mean hiiih water mark. 

(C) Supplemental Classitieations: 

(\]_ I'rout waters and swamp waters - 200 
feet: 

(ii) Niitncnt sensiti\e waters and out- 
standing resource uaters - 300 feet . 

Cjroundwater lowenng ditches and de\ices 



- KIO teet. 

Adjoining propert\' imder separate own- 
ership or control -^ 50 teet: 
(6) I'uhlic road nght of waN s - J_00 feet, 
(d) AH scptage disposal sites, at^ the time of in- 
itial septage disposal site pennil issuance, shall 
be kicated at least the minimum distances speci- 
fied in Rule .0Q07(c)( l-.s). I he scptage disposal 



site shall not be expanded to encroach upon the 
originalK estabUshed minimum setback dis- 
taiices. 



(e) Scptage disposal sites shall not be located 
where the slope of the land i^ greater than 12 
percent. 

Stalutoiy Authority G.S. 130.1-20/ .1 . 

.(WdS MAN AGF.MKM OK SKPTAGE 
DISPOSAL Sn KS 

L ntreated septage shall be disposed of at a 
wastewater treatment plant, disked, plowed or 
otherwise incorporated in the soil, or treated by 
a means to reduce pathogens or further reduce 
pathogens within 24 hours of removal Irom a 
ground absorption sewage disposal system unless 
placed in a tumporup . septage detention system 
which is part of a rogi' . tered pemiitted disposal 
site or method. 

(1) Each septage disposed site shall be posted 
with ^^NO TRi;SPASSING' signs. Access 
roads or paths crossing or leading to the 
disposal area shall be posted "NO IRL-S- 
PASSING" and a legible sign of at least two 
feet by two feet stating "SliFTAGE DIS- 
POS.AL AREA" shall be mamtained at each 
entrance to the disposal area. 

(2) Septage shall be applied in such a manner 
as to have no standing surface collection of 
liquid 24 hours after application. 

(3) No hazardous wastes shall be permitted on 
the site. 

(4) No industrial or solid wastes shall be de- 
posited on the site without prior appro%al 
by the Department. 



(5) The pi I of the soil-septage mi.xture shall 
be maintained at 6.5 or greater at all times. 

(6) The site will be managed in such a manner 
as to minimi/,e soil erosion and surface water 
runoff. Appropnate soil and water man- 
agement practices shall be implemented and 
maintained. All water control staictures 
shall be designed, installed, and maintained 
to control the runoff resulting from a 10-vear 



storm. A wntten management plan shall be 
prepared and submitted to t_hc Department 
for review. 
(7) Records and reports will be maintained to 
show compliance with permit requirements 
and to assist in proper septage disposal. A 
log which records the date of pumping, gal- 
lons of septage pumped, and location o| 
disposal site will be maintained tor each 
pumping event . 

Stdtiitory Authority G.S. /30A-29/./. 

.0909 SEPTAGE HETENTION S-^STEMS 

All k*ft4 application ■■ > '. tenT:" ' ft+f septage disposal 
sites shall base tm altLMiiato plftft- fof pro\ide fa- 
cilities or ha\e an alternate plan for the detention 
or disposal of septage during periodt . af advor ' - ' e 
' ■ veatlK ' r conditioiVj: dunng penods when the 
approved disposal method is not a\ailable: 

(1) The use of a septage detention '. ;. ' jtomi' . 
system at a permitted septage disposal site. 
shall be acceptable only as a temporar>' 
storage method during periods of adverse 
weather conditions; 

(2) Septage detention systems which are de- 
signed to store scptage pnor to ultimate dis- 
posal in a wastewater treatment plant are 
not a component of a septage disposal site 
and shall be loc:iled the minimum distance 
sy^ecilied from the following: 

(a) l'n\ate residence, place of business, or 
place of public asscmbh' - IdO teet: 

(b) Potable water supph' x'.ell or potable water 
suppK spnng - IIH) teet: 

(c) Suiface waters - li)() feet: 

(d) PropertN lines - 25 feet. 

An enclosed storage s\ stem ( steel or 
fiberglass tanks) shall be used. Septage shall 
be transferred to and from the storage s\s- 
tem m a sale, sanitan manner that pre cnts 
leaks or spills o[ scptage. 

(3) ^-^ Each septage detention system shall pre- 
\ent the flow of septage out of the s_\ stem 
and mto the seasonally liigli water table, 
onto the ground surtace or into an> of the 
surface w citers of the state: 



9,59 



yORTH CAROLI.\A REGISTER 



PROPOSED RULES 



(4) f3^ Septage management firms utilizing de- 
tention systems shall control odors from 
such systems; and 

(5) f4^ Septage shall be removed from the a de- 
tL ' ntionr i detention system at- tJ*e e arli e r . t fe- 
' ■ oniblt, ' vsL ' ather. when an approved means 
of disposal is available. 

Statutory Authority G.S. I30A-29I.I. 

.0912 IKANSPOKIAIION OFSEPrA(;K 

(a) iWX septage shall be transported in a safe, 
sanitan,' manner that prevents leaks or spills of 
septage. 

(b) An approved septage management firm, 
possessing a valid septage management firm per- 
mit, shall display decals or lettering on each side 
of every pumper vehicle operated bv the firm 
showing the name, address, phone number, and 
septage permit number of the septage manage- 
ment firm. All decals or Icltenng on the pumper 
vehicle shall be no less than three (3) inches in 
height and plainly \ isible. Identification shall be 
of a permanent nature (i.e., no removable signs). 

Statutory Authority G.S. I30A-:0I.I. 



1\ oticc is hereby given in accordance with G.S. 
1 508- 1 2 that the Commission for Mental Hea/th, 
.Mental Retardation and Substance Abuse Senices 
intends to adopt mle(s) cited as JO NCAC 14.4 



.1401 - .1403. .1501 

- .1703, .ISO J - .1813. 
.2101 - .2106. .2201 - 

- .2403. .2501 - .2508. 
.2801 - .2804. .2901 - . 
rule(s) cited as 10 



1506, .1601 
1901 - .1905, 
.2207. .2301 ■ 



.1609, .1701 
2001 - .2007. 
.2304. .2401 



2601 - .2612. .2701 - .2703. 
2902. .3001 - .3004: amend 



S'CAC 18F .0115 - .0119. 
.0121 - .0122; ISM .1303; and repeal rule(s) cited 
as 10 NCAC ISF .0120. 

1 he proposed effcctrve dates of these actions are 
Mav I. 1990 andJulv I. 1990. 



Th 



he public hearing will be conducted at 1:00 
p.m. on I'ebniary 15. 1990 at Multipurpose Room. 
Roister Building, Cherry Hospital, Goldsborn. 
A.C. 



c 



ominent Procedures: Any interested person 
may pr-csent his or her comments by oral presen- 
tation or by submitting a written statement. Per- 
sons wishing to make oral presentations should 
contact Marilyn Brother'^. Division of Mental 
Health. Mental Retardation and Substance Abuse 



Services, 325 N. Salisbury Street, Raleigh, NC 
27611, (919) 733-4774 by Febr-uary 15, 1990. 
Fhe hearing record will remain open fir written 
comments from January 16, 1990 through Febru- 
ary 15. 1990. Written comments must be sent to 
the above addr'ess and must state the rule(s) to 
which the comments are addressed. Fiscal infor-- 
mation on these rules is also available from the 
same address. 

CKAI'I KK 14 - MKM Al. UKALTII: GKNFRAL 

SLIK IIAITKK I4A - IDEMIFYING 
INFORMATION 

SECTION .1400 - PI RPOSF, SCOPE, 
APPLICABILITY AND DEFINITIONS 

.1401 SCOPE 

Tliis Subchapter sets forth standards for the de- 
liver)' of mental health, mental retardation, and 
substance abuse sen'ices to inmates in the cus- 
tody of the Department of Correction. These 
standards shall apply to such services provided to 
inmates by the Department or by any other pro- 
vider of services on a contractual basis. 

Statutory Autlwrily G.S. 148(d) (19). 

.1402 KFQS IRED SERVICES 

I he Department shall provide or contract for 
comprehensive, quality mental health, mental 
retardation, and substance abuse services to in- 
mates that compare acceptably with those avail- 
able to free citizens in a cost effective manner. 
Such services shall include, but need not be lim- 
ited to, emergency, prevention, case manage- 
ment, outpatient, residential, and inpatient 
services to meet the needs of inmates in need of 
such seniccs. 

Statutory Authority G.S. 14S(d)(19). 

AM)}, DEFINITIONS 

For the rules contained in this Subchapter, the 
following definitions apply: 
(!) "Active client" means an inmate who is 

receiving: 
(a) mental health or substance abuse treat- 
ment and who: 
(i) has a wiilten plan of treatment, with 

specific goals and time frames; 
(ii) is receiving treatment in accordance 

with the plan; and 
(iii) lias met face to face with a mental 
health staff member or other specificall\ 
trained staff member within the past 90 
da\s. 



NORTH ( WROLINA REGISTER 



960 



PROPOSED RULES 



(b) developmental programming for a client 
who is mentally retarded which is initiated 
with the development of a habilitation 
plan. 

(2) "Administering medication" means direct 
application of a medication whether by in- 
jection, inhalation, ingestion, or any other 
means to a client. 

(3) "Admission" means acceptance of an in- 
mate for mental he;dth, mental retardation 
or substance abuse services in accordance 
with Department procedures. 

(4) "Alcohol abuse" means psychoacti\e sub- 
stance abuse which is a residual category' for 
noting maladapti\e patterns of alcohol use 
that have never met the criteria for depend- 
ence for that particular class of substance. 

(5) "Area" means one of the six geographic 
catchment areas designated by the Depart- 
ment for administrati\e purposes. 

(6) "r\rea mental health, mental retardation, 
and substance abuse program" means a le- 
gally constituted public agency pro\iding 
mental health, mental retardation and sub- 
stance abuse services for a catchment area 
designated by the Commission for Mental 
Health, Mental Retardation and Substance 
.Abuse Services. 

(7) "Certified substance abuse counselor" 
means an indi\'idual who is certified as a 
drug or alcohol abuse counselor b\' the 
North Carolina Substance Abuse Profes- 
sional Certification Board. 

(8) "Chief of Mental Health Services" means 
the individual who is responsible for the de- 
velopment, provision and monitoring of 
mental health and mental retardation ser- 
vices in the Department's Division of Pris- 
ons. I lis duties include ensuring compliance 
w ith statutoPv' and professional standards for 
services. 

(9) "Client" means an inmate v\ho is admitted 
to, and receiving mental health, mental re- 
tardation, or substance abuse services trom 
or who in the past had been admitted to and 
received such services from, the Department. 

(10) "Client care evaluation study" means 
evaluation of the quality of services by 
measuring actual services against specific 
criteria througli collection of data, identifi- 
cation and justification of variations from 
criteria, analysis of unjustified variations, 
corrective action, and follow-up study. 

(Ill "Client record" means a written account 
ot all mental health, mental retardation, and 
substance abuse services pio\ided to an in- 
mate from the time of formal acceptance of 
the inmate as a client until temunation ot 



services. This information is documented 
on standard forms which are filed in a 
standard order. 

(12) "CUnician" means a psychiatrist, physi- 
cian, or psychologist. 

( 13) "Commission" means the Commission for 
Mental Health, Mental Retardation and 
Substance Abuse Services, estabhshed under 
Part 4 of /\rticle 3 of Chapter 143B of the 
General Statutes. 

(14) "Contract agency" means a legally consti- 
tuted entity with which the Department 
contracts for a ser\ice as defined in the 
standards exclusive of intermittent purchase 
of service for an indi\ idually identified client. 

(15) "Correctional Center" means a prison fa- 
cility, usually of 75 to 150 inmates, that 
provides limited programs and services to 
the assigned inmate population. 

(16) "Correctional Institution" means a prison 
facility, usually of at least 350 inmates, that 
provides comprehensive programs and ser- 
vices to the assigned inmate population. 

(17) "Department" means the Department of 
Correction. 

(18) "Detoxification" means the physical 
withdrawal of a cUent from alcohol or other 
drugs under medical supervision. 

(19) "DllR" means the Department of Human 
Resources. 

(20) "DllR sur\e\' team" means the staff de- 
legated by the Department of Human Re- 
sources to monitor the implementation of 
standards in accordance with the pro\isions 
ofG.S. 148- 19(d). 

(21) "Direct care staff ' means staff who pro- 
vide care, treatment, or habilitation scnices 
to clients on a continual and regularly 
scheduled basis. 

(22) "Disability group" means either the men- 
tally retarded, mentally ill, or substance 
abuser. 

(23) "Discharge" means the termination of 
mental health, mental retardation or sub- 
stance abuse sendees to a client. 

(24) "Dispensing medication" means issuing to 
a client, one or more unit doses of a 
medication in a suitable container with ap- 
propriate labeling. 

(2'^) "Documentation" means pro\'ision of 
written, dated and authenticated evidence of 
the delivery' of services to a client or com- 
pliance with standards, e.g., entries in the 
client record, policies and procedures, min- 
utes of meetings, memoranda, reports, 
schedules, notices and announcements. 

(26) "Dmg" means an\' article recogni/.ed as a 
dnig in the "United States Phannacopocia" 



961 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



or any other drug compendium which is in- 
tended for use in the diagnosis, cure, miti- 
gation, treatment or prevention of disease 
or intended to affect the structure or any 
function of the body. 

(27) "Drug abuse" means psychoactive sub- 
stance abuse which is a residual categon,' for 
noting maladaptive patterns of drug use that 
ha\e never met the criteria for dependence 
for that particular class of substance. 

(28) "Emergency service" means a ser\ice 
which is provided on a 24-hour non- 
scheduled basis to inmates for immediate 
screening and assessment of presenting 
problems. Crisis intervention and referral to 
other services are provided as indicated. 

(29) "Facility" means the physical area, in- 
cluding both buildings and grounds, under 
the auspices of the Department where men- 
tal health, mental retardation, or substance 
abuse services are provided. 

(30) "First aid" means emergency treatment for 
injur>' or sudden illness before regular med- 
ical care is available. First aid includes arti- 
ficial respiration, the Heimlich maneuver, 
care of wounds and bums, and temporary 
administering of splints. 

(31) "Habilitation" means education, training, 
care and specialized therapies undertaken to 
assist a client in achie\ing or maintaining 
progress in de\elopmental skills. 

(32) "Habilitation plan" means an indi\idual- 
ized, written plan for clients who are men- 
tally retarded which includes measurable, 
time-specific short and long-range objectives 
based on evaluations, observations, and 
other assessment data. The plan is based 
on the strengths and needs of the client and 
identifies specific staff responsibilities for 
implementation of the plan. 

(33) "Health Professional" means a staff 
member trained in the delivery of medical 
or mental health services. 

(34) "Inmate" means an incarcerated indi\idual 
who remains in the custody of the Depart- 
ment . 

(35) "Inpatient service" means a service pro- 
\'ided on a 24-hour basis under the clinical 
direction of a physician. The service pro- 
vides continuous, close supervision for cli- 
ents with moderate to severe mental health 
problems. 

(36) "Fcgend diaig" means a drtig that must 
be dispensed with a prescription. 

(37) ".\lcdicati(.)n" means a substance recog- 
nized in the official "I'nited States 
Pharmacopoeia" or "National Formular\" 
intended for use in the diaaiosis, cure, miti- 



gation, treatment or prevention of disease 
or intended to affect the structure or any 
function of the body. 

(38) "Mental Health I'rogram Director" means 
the individual who is responsible for the 
operation of mental health and mental re- 
tardation services for inmates. 

(39) "Mental illness" means the term as defined 
m G.S. 1220-3(21). 

(40) "Mental retardation" means the term as 
defmed in G.S. 122C-3(22). 

(41) "Nurse" means a person licensed to prac- 
tice in the State of North Carolina either as 
a registered nurse or as a licensed practical 
nurse. 

(42) "Officer in charge" means the custod\ of- 
ficer who has designated responsihihty for 
the custody and safekeeping of inmates in 
the facility. 

(43) "Outpatient service" means a service de- 
signed to meet the diagnostic and 
therapeutic needs of clients of all disabilit\ 
groups. Individual counseling, 
psychotherapy, extended testing and evalu- 
ation, and medication therapy are provided 
as needed. 

(44) "I'atient" means "client" as defined in this 
Rule. 

(45) "Peer review" means the formal assess- 
ment by professional staff of the quality and 
efficiency of services ordered or performed 
by other professional statT. 

(46) "Physician" means a medical doctor who 
is licensed to practice medicine in the State 
of North Carolina under the provisions of 
G.S. 90-18. 

(47) "Prevention and intervention service" 
means a service pro\ided to the general 
pubfic or major segments of a community. 
Service acli\ities include counseling, infor- 
mation, instruction, and technical assistance 
with the goals of preventing dysfunction and 
promoting well being. 

(48) "Pri\i]eging" means a process b\' which 
each staff member's credentials, training and 
experience are examined and a determi- 
nation made as to which treatment or ha- 
bilitation modalities he is qualified to 
provide. 

(49) "Program evaluation" means the system- 
atic documented assessment of program ob- 
jectives to determine the effecti\eness, 
efficiency, and scope of the system under 
mvcstigation, to define its strengths and 
weaknesses and thereby to pro\ide a basis 
for informed decision-making. 

(50) "Protective device" means therapeutic 
equipment which pro\ides sup|-)ort for med- 



iXORTH CAROLINA REGISTER 



96 : 



PROPOSED RULES 



ically fragile clients or enhances the safety 
of clients with self-injurious behavior. Such 
de%'ice may include posey vests, gen-chairs 
or table top chairs to provide support and 
safety for clients with major physical hand- 
icaps; a device such as helmets and mittens 
for self- injurious behaviors; or a device such 
as soft ties used to prevent medically ill cli- 
ents from removing intra\enous tubes, in- 
dwelling catheters, cardiac monitor 
electrodes, or similar medical devices. 

(51) "Psychiatric nurse" means an individual 
who is hcensed to practice as a registered 
nurse in the State of North Carolina by the 
North Carolina Board of Nursing and who 
is a graduate of an accredited master's le\el 
program in psychiatric mental health nursing 
with tw^o years of experience, or has a mas- 
ter's degree in behavioral science with two 
years of supervised clinical experience, or has 
four years of experience in ps\ chiatric men- 
tal health nursing. 

(52) "Psychiatric social worker" means an in- 
dividual who holds a master's degree in so- 
cial work from an accredited school of social 
work and has two years of clinical social 
work experience in a mental health setting. 

(53) "Psychiatrist" means a physician who is 
licensed to practice medicine in the State of 
North Carolina and who has completed an 
accredited training program in psychiatr\'. 

(54) "Psychologist" means a psychologist who 
is licensed as a practicing psychologist or a 
psychological associate in the State of North 
Carolina or one exempt from licensure re- 
quirements who meets the supervision re- 
quirements of the North Carolina Board of 
Examiners of Practicing Psychologists. 

(55) "PsychotherapN " means a form of treat- 
ment of mental illness or emotional disor- 
ders which is based primaril_\' upon verbal 
or non-\'erbal communication with a client. 
Treatment is pro\ided by a trained profes- 
sional for the purpose of removing or mod- 
ifying existing symptoms, of attenuating or 
reversing disturbed patterns of behavior, and 
of promoting positi\e personality groulh 
and development. 

(56) "Psychotropic medication" means medica- 
tion given with the primars' intention of 
treating mental illness. These medications 
include, but are not limited to, antipsychot- 
ics, antidepressants, minor tranquilizers and 
lithium. 

(5") "Qualitled alcoholism professional" means 
and individual who is certified by the North 
Carolina Substance Abuse Professional 
Certification Board or who is a siraduate of 



a college or university with a baccalaureate 
or advanced degree in a human service re- 
lated field with documentation of at least 
two years of supervised experience in the 
profession of alcoholism counseling. 

(58) "Qualified drug abuse professional" means 
an individual who is certified by the North 
Carolina Substance Abuse Professional 
Certification Board or who is a graduate of 
a college or university with a baccalaureate 
or advanced degree in a human service re- 
lated field with documentation of at least 
two years of supervised experience in the 
profession of drug abuse counseling. 

(59) "Qualified mental health professional" 
means any one of the following: psychiatrist; 
psychiatric nurse; psychologist; psychiatric 
social worker; an individual with a master's 
degree in a related human service field and 
two years of supervised clinical experience in 
mental health ser\ices; or an mdividual with 
a baccalaureate degree in a related human 
service field and four \ears of supervised 
clinical experience in mental health ser\'ices. 

(6(1) "Qualified mental retardation pro- 

fessional" means an indi\'idual who holds at 
least a baccalaureate degree in a discipline 
related to de\'elopmental disabilities and 
who has at least one \ear of experience in 
working with mentally retarded clients. 

(61 ) "Qualified professional" means a qualified 
alcoholism professional, a qualified drug 
abuse protessional, a qualified mental health 
professional, a qualified mental retardation 
professional, or a qualified substance abuse 
professional. 

(62) "Qualified record manager" means an in- 
di\idual who is a graduate of a cumculum 
accredited by the Committee on .Vllied 
Health Education and .Accreditation of the 
.American Medical Association and the 
Council on Education of the .American 
.Medical Record Association and who is 
currently registered or accredited by the 
.American .Medical Record .Association. 

(63) "Qualified substance abuse professional" 
means an indi\'idual who is certified by the 
North Carolina Substance .Abuse Profes- 
sional Certification Board or who is a grad- 
uate of a college or uni\"ersity with a 
baccalaureate or ad\anccd degree in a hu- 
man service related field with documentation 
of at least two years of supervised experience 
in the profession of alcoholism and drug 
abuse counseling. 

(64) "Quality assurance" means a process for 
objccti\'cly and systematically monitoring 
and csaluating the qualitv, appropriateness. 



963 



SORTH CAROLISA REGISTER 



PROPOSED RULES 



and effectiveness of mental health, mental 
retardation, and substance abuse services 
provided and the degree to which those ser- 
vices meet the identified needs and intended 
goals for clients. 

(65) "Release" means the completion of an 
inmate's active sentence and return to the 
community. 

(66) "Research" means inquir> invoking a trial 
or special observation made under condi- 
tions determined by the investigator to con- 
firm or disprove a hypothesis, or to explicate 
some principle or effect. 

(67) "Residential service" means a service pro- 
vided in a setting where 24-hour supervision 
is an integral part of the care, treatment, ha- 
bilitation or rehabilitation pro\ided to the 
client. 

(68) "Responsible clinician" means the psy- 
chologist, psychiatrist, or physician desig- 
nated as responsible for a client's treatment. 
This may include a clinician designated as 
on-call for the facility. 

(69) "Restraint" means limitation of the client's 
freedom of mo\ement with the intent of 
controlling behavior by mechanical devices 
which include, but are not limited to, cuffs, 
ankle straps, or sheets. I'or purposes of 
these rules, restraint is a therapeutic 
modality and does not include protective 
devices used for medical conditions or to 
assist a non-ambulatory client to maintain a 
normative body position or other devices 
used for security purposes. 

(70) "Seclusion" means isolating a client in a 
separate locked room or a room from w hich 
he cannot exit for the purpose of controlling 
the client's behavior. I'or purposes of these 
rules, seclusion is a therapeutic modality and 
does not include segiegation for administra- 
tive purposes. 

(71) "Service delivery site" means any area, 
correctional institution, residential unit, or 
inpatient unit operated by the Department 
where mental health, mental retardation, 
and substance abuse services arc pro\idcd. 

(72) "Standards" means minimum standards 
as mandated by G.S. 148-l')(d) for the de- 
li\'ery of mental health, mental retardation, 
and substance abuse services to inmates in 
the Department. Such standards prescribed 
by the Commission for Mental Health, 
Mental Retardation and Substance Abuse 
Ser\ices are codified in 10 NCAC 14A, .1400 
- .3100. 

(7.'^) "Substance abuse" means the pathological 
use or abuse of alcohol or other diaigs in a 
wa\' or to a dcgiee that produces an impair- 



ment in personal, social, or occupational 
functioning. 

(74) "Substance Abuse Program Director" 
means the indisidual who is responsible for 
the operation of substance abuse services. 

(75) "Support service" means a service pro- 
vided to enhance an individual's progress in 
his primary treatn^ent or habilitation pro- 
gram. 

(76) "Testing services" means the adminis- 
tration and interpretation of the results of 
standardized instruments for the assessment, 
diagnosis or evaluation of psychological or 
developmental disorders. 

(77) "Treatment" means the process of en- 
hancing the physical, psychological, and so- 
cial functioning of clients with identified 
disorders. 

(78) "Treatment plan" means an individual- 
ized, written plan of treatment for mentally 
ill and substance abuse clients. The plan 
contains time-specific short and long term 
goals and strategies for implementing the 
goals, and identifies direct care staff respon- 
sible for the provision of treatment services 
to the client. 

(79) "Waiver" means a situation in which the 
Commission determines that a specific 
prison site is not required to comply with a 
specific standard. A waiver is granted ac- 
cording to the proN'isions of 10 NCAC 14B 
.0500. 

Statutory Authority G.S. I4^(d}(l9}. 

SECTION .1500 - ORGANIZ VTION.VL 
KKSI'ONSIHII iriF.S 

.1501 ( OORDINAIION AM) l)KI.I\KK\ OF 
SKKMCKS 

The Department shall de\elop and implement 
a plan to ensure coordination in the delivery of 
all mental health, mental retardation, and sub- 
stance abuse services. 

Siatutoiy Authority G.S. I4f^{d){l9). 

.1502 ORGANIZATIONAL CHART 

The organizational chart of the Department 
shall clearly articulate the channels of responsi- 
bility in implementing and ensuring the coordi- 
nation of mental health, mental retardation, and 
substance abuse services. 

Sialutoiy Authority G.S. NSidli 19). 

.150.1 OR(;.\MZ.MION Ol I'OI.K IKS AM) 
TROCEDLRIS 



NORTH CAROLIN.4 REGISTER 



964 



PROPOSED RULES 



(a) The Department shall maintain all policies 
and procedures relating to mental health, mental 
retardation, and substance abuse services or their 
management as specified in the rules of this 
Subchapter. 

(b) The policies and procedures shall be main- 
tained in an indexed and organized manner. 

Statuttvy Authorily G.S. l4S(du 19). 

.1504 DISTRIBLTION OF STANDARDS 

The Department shall distribute to ail service 
deliver)' sites adequate copies of the rules of this 
.Subchapter and any subsequent re\'isions to these 
rules as they occur. 

Stdtuloiy Authority G.S. I4^(di( 19). 

.1505 (OMl'l lANC K W UN SlANDARnS 

The Department shall conduct annual internal 
e\aluations of compliance with Commission 
standards in each service delixers" site. Reports 
of such audits shall be made a\'ailable to the 
DIIR survey team. 

Statutoiy Authorily G.S. NS(d)(/9}. 

.1506 (;RIK\ \N( K I'()1.IC^ 

The Department shall de\elop and implement 
a written inmate L!Tie\ance policy w hich identities 
procedures for rc\ie\v and disposition of grie\- 
ances regarding mental health, mental retarda- 
tion, and substance abuse services. 

Statutory Authority G.S. l4S(d)(l9). 

SIC I ION .1600 - RKQl IRID ST.\1 I 

.1601 PSYCHIATRIST 

liach ser\'ice deli\cr\' site shall emplo\' or con- 
tract for the services of sufficient ps\chiatric staff 
to ensure clients' accessibilit\' to services wliich 
recjuire the judgment and expertise of a psychia- 
trist. 

Statutoiy Authority G.S. l4S(dl(l9). 

.1602 PSYCHOLOGIST 

Each service deli\'er\' site shall employ or con- 
tract for the ser\'ices of at least one psychologist: 
however, sufficient psychological staff shall be 
available to ensure clients' accessibilit\' to ser\ices 
which require the judgment and expertise ot a 
psNchologist. 

Statutoiy Authority G.S. 14S(dl( 19). 
.\M)^ RHGISTERKD M RSK 



(a) L'ach service delivery site shall employ or 
contract for the services of at least one psychiatric 
nurse. 

(b) l'ach service deli\er>' site shall employ or 
contract for a sufficient number of qualified reg- 
istered nurses to gi\e clients the nursing care that 
requires the judgment and specialized skills of a 
registered nurse. 

Statutory Authorily G.S. I4^id>il0). 

.1604 PSNCHIA I RIC SOCIAL WORKER 

Each service tleliven site shall emplo\ or con- 
tract for the ser\ices o[ at least one psychiatric 
social worker: howe\'er. sufficient social work 
staff shaU be a\ ailable to ensure clients' accessi- 
bility to services which require the knowledge 
and expertise of a social w orker. 

Statutoiy Authority G.S. l4Sid)(l9). 

.1605 ( LRIIFIKD ALCOHOLISM, DRl (i 
ABl SL, OR SI BSIANf K AKISL 
COLNSLI.OR 

Each service delivery site shaU emp!o>' or con- 
tract for the services of at least one certified 
alcoholism counselor, certified drug abuse coun- 
selor, or certified substance abuse counselor 
ba.sed upon the treatment needs of the popu- 
lation served. 

Statutory Authority G.S. l4Stdli 19). 

.1606 QL ALU ILD MENTAL KL I ARDATION 
PROFESSIONAL 

The Department shall ha\'e at least one cjualified 
mental retardation professional whose primar> 
duty is to be responsible for mental retardation 
services. The designated indi\idual shall ensure 
the provision of necessar>' training and support 
to case managers for clients who are mentally 
retarded. 

Statutoiy Authority G.S. /4SidJf/9). 

.1607 STAFF DE\KI()PMEN I COORDINAIOK 

The Department shall designate an indi\idual 
whose primar\' responsibility is to ensure appro- 
priate training of custodial and professional staff 
in the deli\er\' of mental health, mental retarda- 
tion, and substance abuse services and coordi- 
nation of pre\ention seriices. 

Statutoiy Authority G.S. /4S(d/fI9). 

.1608 Ql .MIEIED RECORD MANAGER 

la) 1 he Department shall ha\e at least one 
qualified record manager whose primar>' duty is 
to be responsible for mental health, mental re- 



965 



i\OR TH C. A R OLINA R EG IS TER 



PROPOSED RULES 



tardation, and substance abuse senices' records. 
This indi\idual shall pro\ide the necessary' train- 
ing and support to other qualified or trained re- 
cord managers and staff responsible for client 
records. 

(b) Each area and correctional institution shall 
employ at least one trained records manager to 
manage client records in the respective service 
delivery' site. 

(c) Each residential and inpatient unit shall 
employ at least one qualified record manager. 

Sldtutoty Authority G.S. l4S(d)( 19j. 

.1609 SLI'I'ORI ST.AKF 

Each service delivers' site shall ha\ c support staff 
sufficient to ensure the deli\er\' of mental health, 
mental retardation, and substance abuse services 
to clients. This includes, but need not be limited 
to, clerical staff 

Stalutmy Authority G.S. I4S(d)( 19). 

SECriON .1700 - ORGAM/AIIONAL 
RKI.AIIONS 

.1701 COOKDINAIION Of- SKKMCKS 

The Department shall establish internal working 
relationships between the staff of mental health, 
mental retardation, and substance abuse services, 
custody personnel, and other scr\'icc staff to as- 
sure a comprehensive system of services for in- 
mates who are mentally ill, mentally retarded or 
substance abusers. 

Statutory Authority G.S. l4S(dl(l9}. 

.1702 IM OKMAJION AM) Ol Ikl A( II 
SKKMCLS 

The Department shall provide to staff informa- 
tion designed to promote awareness of mental 
health, mental retardation, and substance abuse 
scr.'iccs a\ailable to inmates within the Depart- 
ment. 

Statutory Authority G.S. l4S(d)( 19). 

.170.^ AGRKtMENT WITH TIIK DKI'ARIMENT 
OI IIIMAN RKSOl RCKS 

1 he Department shall develop a written agree- 
ment with the Department of Human Resources 
regarding mutual responsibilities for mental 
health, mental retardation, and substance abuse 
ser\ ices to inmates. 

Statutory Authority G.S. /4Sidj(/9j. 

SECnON .1800 - Ql Al.n^ ASSURANCE 



.1X01 SCOPE 

Quality assurance is a continuing responsibility 
of the Department and each service deli\er\' site 
that offers mental health, mental retardation, and 
substance abuse services. Quahty assurance ac- 
ti\ities include clinical and professional super- 
\ision and pri\ileging; client care e\'aluation 
studies; record review; utihzation and peer re- 
view; employee education and training; program 
evaluation and assurance of correctixe action. 

Statutoiy Authority G.S. l4S(d)(l9). 

.1802 QLAI.HA .ASSl RANCE PLAN 

(a) The Department shall establish and imple- 
ment a written quality assurance plan for mental 
health, mental retardation, and substance abuse 
ser\'ices which shall describe how quality assur- 
ance acti\'ities shall be carried out. Quality as- 
surance activities shall include the following: 

(1) an objective and systematic process for 
monitoring and evaluating the quality and 
appropriateness of client care including a 
re\iew of significant incidents, e.g. sui- 
cides, sudden deaths, and major assaults: 

(2) a written plan of protessional clinical 
supervision describing such activities and 
how they shall be carried out; 

(}i) the establishment and implementation of 
program evaluation activities; 

(4) the strategies for impro\ ing client care; and 

(5) the resolution of identified problems. 

(b) The plan shall be reviewed annualh by the 
Department and revised il~ necessary. 

Statutoiy Authority G.S. l4S{d){ 19). 

.180.? Ql AI.HA ASSl RANGE COMMITTEES 

(a) I he Department shall have two quality as- 
surance committees: one for mental health and 
mental retardation and a second for substance 
abuse. 

(b) The purpose, scope and organization of the 
qualit\ assurance committees shall be specified in 
the quality assurance plan. 

(c) Each quality assurance committee shall 
meet at least montlily. 

Statutory Authority G.S. /4S(dl(/9). 

.1804 ( OMl'OSmON AND ACIIM IIES OK 
Ql AI.HA .VSSL RANGE GOMMII I EES 

(a) Each quality assurance committee shall be 
comprised of representation tVom each relevant 
disabilitv service area and a representative ot ad- 
ministration from the respective disability. 
Committee members shall also include a nurse. 



NORTH CAROLINA REGISTER 



966 



PROPOSED RULES 



a psychologist, a ph\sician. a social worker, and 
qualified substance abuse professional. 

(b) A member of a quality assurance commit- 
tee shall not review his own clients' treatment or 
habilitation records. 

(c) .Minutes of meetings shall be recorded and 
shall include date; time; attendees and absentees: 
and a summary of the business which was con- 
ducted. 

Sldiiiioij Ainhoriiy G.S. l4S(d)t 19). 

.IS()5 CI IKM C.VKK K\.\l,l AllON Sll DIES 

The quality assurance committees shall ensure 
that at least two client care evaluation studies of 
issues relevant to the improvement of senices to 
clients are completed during each fiscal year. 

Statutoiy Aiitkorily G.S. l4S(d)i 19 j. 

.1S()6 (I IKM RKCOKD KK\ IKW 

I'ach qualitv assurance committee shall estab- 
lish, implement and document the criteria, pro- 
cedure and methodologv for client record reviews 
for completeness and adequacy as delineated in 
Section .0700 of this Subchapter. 

Suuutoiy .[uthohty G.S. l4S(d}(I9). 

.IS07 I III 1/ AllON AM) I'KKR KKAIKW 

Hach quality assurance committee shall estab- 
lish, implement and document the criteria, pro- 
cedure and methodology for utilization and peer 
review. 

Suuutoiy .Uithoriiy G.S. l4SidU 19 1. 

.ISOS St I'l K\ISI()\ OIMKM A! IIKAI III, 
MKM \I RKI AKDAIION AM) 
SI US I ANTE .\I5LSK S lAI K 

(a| The Department shall implement a written 
plan of super\'ision for staff who are not qualified 
mental health, mental retardation, or substance 
abuse professionals and who provide mental 
health, mental retardation, or substance abuse 
senices. 

(b) bach staff member who is not a qualified 
professional in that sen'ice area shall have an in- 
dividual contract of supervision. 

(c) Each mental health or substance abuse staff 
member who provides sen'ices and who is not 
quaUficd in that senice area shall be supervised 
by a professional qualified in his disability senice 
area, f-ach mental retardation staff member shall 
be supervised by, or ha\'e access to the profes- 
sional supervision of a qualified mental retarda- 
tion professional. 

SuuuUnT .-iuthorilv G.S. l4S\du 19). 



Mm PRIVII.EGINn OF All. PROFESSIONAL 
STAFF 

(a) i he Department shall implement vvntten 
policies and procedures by which the qualifica- 
tions of each professional are examined and a 
determination made as to treatment or habili- 
tation privileges granted and supervision needed. 

(b) Delineation of privileges shall be based on 
documented verification of the individual's com- 
petence, training, experience and licensure. 

(c) These policies and procedures shall be re- 
viewed and approved by the Department's qual- 
ity assurance committees. 

Stalutoiy .tuihority G.S. l4S(d){19). 

.1810 EMPLOYEE EDI CATION AND 
TRAINING 

(a) The Department shaU provide or secure 
orientation programs and annual continuing ed- 
ucation and training for employees to enliancc 
their competencies and knowledge needed to ad- 
minister, manage, and deliver c^uahty mental 
health, mental retardation, and substance abuse 
services. The education and training activities 
shall address at a minimum the needs identitled 
by the quality assurance process and related 
committees. 

(b) I he Depailment shall assure the mainte- 
nance of an ongomg record of all education and 
training activities provided or secured for em- 
plovees. 

(c) bducation and training activities shall be 
provided at no expense to staff 

Statutoiy .luthoriiy G.S. NSfdif 19). 

.1X11 l'R()(,RAM E\ AH AllON .VdlMIIES 

(a) The Department shall implement program 
evaluation activities. 

(b) 1 hese activities shall retlect the evaluaticm 
of program quality, effectiveness and eificiencv in 
such areas as: 

(1) the impact of the program in reducing 

readmissions: 
(2| availability and accessibilitv of services: 
{}) impact of services upon the inmates within 

the service area; 

(4) patterns of use of ser\ice; and 

(5) cost of the program operation. 

Sidtutoty .{uthority G.S. I4^i d'ji 19 j. 

.1812 Ql AIIIA ASSl RANCE ANNl AI 
REl'ORI 

The Department shall make available to the 
Department of Human Resources a vvntten an- 
nual report summan/ina the activities and rec- 



96- 



NORTH C.\ROLlS.A REGISTER 



PROPOSED RULES 



ommendations of the quality assurance 
committees. I his report shall include at a mini- 
mum the tbllowing functional areas: 

(1) client care evaluation studies; 

(2) client record reviews; 

(3) utilization and peer review^s; 

(4) clinical supervision; 

(5) employee education and training activities; 
and 

(6) the results of program evaluation. 

Statutory Authority G.S. l4S(d)(l9). 

.1813 COKKKCnVK ACTION 

The Department shall ensure that corrective 
action is taken to address problems found 
through the quality assurance process. 

Statutory Authority G.S. I48{dj{l9). 

SECTION .1900 - FACILITIES MANAGEMENT 

.1901 SCOPE 

The standards in this Section appl) to each ser- 
vice delivery site within the Department and to 
any other provider of services on a contractual 
basis. 

Staiutoty Authority G.S. l4S(d){l9). 

.1902 HI ILDINGS AND CiKOLNDS 

Buildings and grounds shall be well-maintained 
in order to promote the health and safety of both 
clients and staff and to enhance the image of 
mental health, mental retardation, and substance 
abuse ser\ices. 

Statutofy Authority G.S. I48(d}{l9). 

.1903 SPACE REQl IREMENTS 

(a) Space shall be pro\ided to facilitate the de- 
liver>' of mental health, mental retardation, and 
substance abuse services. 

(b) Space for mental health, mental retardation, 
and substance abuse clients shall be no less than 
that afforded the general population. 

(c) liach chent in a residential or inpatient unit 
shall have at least 60 square feet for single occu- 
pancy and 50 square feet per client when more 
than one client occupies the same cell. 

(d) In residential and inpatient units, no more 
than two clients may share an indi\idual cell re- 
garilless of cell ■n/.c. 

(e) Each service deliver,- site shall have private 
space for interviews and conferences with clients. 

(f) Individual space shall be provided for the 
storage ot each chent's personal belongings. 

(g) When plnsical examinations or medical 
procedures are performed in any service delivery 



site, the examination area shall afford pri\'acy for 
the client. 

Statutory Authority G.S. l4S(d)(19). 

.1904 EQUIPMENT AND FLRNISIIINGS 

Equipment and furnishings shall be age- 
appropnate. 

Statutory Authority G.S. l4S{d)( 19). 

.1905 ADDIIIONAL REQUIREMENTS FOR 
RESIDENl lAL I NITS AND 
INPAl lENT LNITS 

(a) Each residential and inpatient unit pro\id- 
ing mental health, mental retardation, or sub- 
stance abuse services shall ha\e indoor space for 
group activities and gatherings. 

(b) The space in which therapeutic and 
hahilitative activities are routinely conducted 
shall be separate from sleeping areas. 

Statutory Authority G.S. I48{d)( 19). 

SECnON .2000 - CI lEN I RECORDS 

.2001 SCOPE 

1 he standards in tlris Section apply to each ser- 
vice delivery site and to any other pro\ider of 
services on a contractual basis unless otherwise 
specified in this Section. Tliis Section applies to 
the management of chent information wliich is 
generated by a service delivery' site during the 
period of time that treatment or habilitation ser- 
\ices are rendered to clients. Such information 
shall provide a means of communication for the 
staff working with the client; serve as a basis for 
analysis, study and evaluation of quality of ser- 
\ice; and protect the legal interests of clients and 
staff. 

Statutory Authority G.S. l4S(d)(l9). 

.2002 ST.VND.VRD CLIENT RECORD 

The L^epartment shall develop and maintain a 
standard client record for each inmate who re- 
ceives mental health, mental retardation, or sub- 
stance abuse treatment or habilitation seniccs. 
The same forms and filing format shall be utilized 
within each disability. 

Statutory Authority G.S. /4Sfd)(/9). 

.2003 RECORD REQl IREMENTS 

(a) I'here shall be a written client record 
maintained for every client undergoing active 
treatment or habilitation. 

(b) Each client record shall contain, at a nuni- 
mum, the following idcntiiying information: 



NORTH CAROLINA REGISTER 



96S 



PROPOSFD RULES 



( 1 ) inmates name; 

(2) inmate's record number: 

(3) date of birth; 

(4) race, sex, and marital status; 

(5) name, address and telephone number of 
legally responsible person or next of kin; 

(6) admission date; and 

(7) discharge date. 

(c) Active outpatient client records shall be 
kept in the outpatient medical record, which will 
be fded at the client's assigned unit. 

(d) Each inpatient program shall maintain ac- 
tive inpatient records \\ hich shaU be kept separate 
from the outpatient records. This record shall 
be transferred to the inpatient unit where the cli- 
ent is recei\'ing services. 

(e) Information required in other rules in this 
Subchapter (such as. but not Hniited to, 
medication prescribing, administering 
medication, seclusion) shall be documented in 
the client record. 

(f) /\11 client record entries shall include the 
date of entPv- and authentication b\ the individual 
making the cntr\'. The time of service, activity, 
or incident shall be recorded (e.g., sliift notes, 
medication administration, and accidents and in- 
junes). 

(gl .All client record entries shall be legible and 
made in permanent ink or typewritten. 

(h) Alterations in client records, which are 
necessan." in order to correct recording eiTors or 
inaccuracies, shall be made as follows; 

(1) Alterations shall be made bv the individual 
who recorded the entrv'. 

(2) A single, thin line shall be drawn through 
the error or inaccurate entrv' with the ori- 
ginal entrv' stiU legible. 

(3) I'he corrected entrv' shall be legibly re- 
corded above or near the original entrv'. 
An explanation as to the type of doc- 
umentation error or inaccuracy shall be 
recorded whenever the reason for the al- 
teration is unclear. 

(4) ;\Iterations shall include the date of cor- 
rection and initials of recorder. 

(1) I'ach page of the client record shall include 
the inmate s name and number. 

(j ) Ghent records shall contain only those 
svinbols and abbreviations included on an ab- 
breviation list approved by the Department. 

(k) Notations in a client's record shall not 
identity another client by name. 

(1) Each service dehverv' site shall designate in 
writing those individuals authorized to have ac- 
cess to and to document in client records. 

(mi .\ny additional infoimation regarding the 
foUowinsi shall be included in the client record; 



(1) diagnostic tests, assessments, evaluation, 
consultations, referrals, support services 
or medical services provided; 

(2) known allergies or hvpersensitivities; 

(3) miijor events, accidents or medical emer- 
gencies involving the client; 

(4) consent for. and documentation of, release 
of information; 

(5) documentation of applied behavior mod- 
ification vvliich includes at risk or other 
intrusive interventions, including authori- 
zation, duration, summaries of observa- 
tion and justification; 

(6) conferences or involvements with the cli- 
ent s family, significant others, or involved 
agencies or ser\'ice providers: 

(7) documentation of attendance in the out- 
patient service: and 

(8) results of any standardized and non- 
standardized evaluations such as social, 
developmental, medical, psychological, 
vocational or educational. 

Slaliitciij Auihority G.S. l4Stdn 19). 

.2004 COM IDKMIVI IT^ OF CI IKM 
KF(()KD 

(a) .Ml information contained in the client re- 
cord shall be considered pnv ileged and confiden- 
tial. v\ith the exception of information considered 
matters of public record. 

(b) The Department shall ensure confidentiality 
of client records. 

(1) The Department shall develop written 
policies and procedures regarding access 
to client records in accordance with the 
rules of this Subchapter and applicable 
statutes. 

(2) Only stall involved in a client's treatment 
or habilitation and personnel having spe- 
cific record responsibilities shall have ac- 
cess to cUent records. Staff authorized to 
have access to client records shall be des- 
ignated in writing by the Mental Health 
Program Director or Substance Abuse 
Program Director. 

(3) Active client records shall be kept separate 
from active administrative folders and 
shaU be maintained in a secure location 
which shall be locked except when under 
the supervision of staff who are authorized 
to have access to client records. 

(4i On a need-to-know basis, information 
from client records may be provided tor 
departmental management decisions. 
However, such information shall be pro- 
vided by a mental health, mental retarda- 
tion, or substance abuse professional w ho 



969 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



summari/es or interprets the information 
provided therein. 

(c) The Department shall ensure that informa- 
tion contained in client records is released upon 
the written authorization of the inmate or as 
otherwise specified in this Rule. 

(1) If a client is being considered for parole, a 
summar)' of the pertinent contents of his 
client record may be made available, upon 
request, to the Parole Commission. 

(2) Individuals responsible for conducting 
general research or clinical, financial, or 
administrative audits may have access to 
client records, if there is a justifiable, doc- 
umented need for such information. .A 
person receiving the infonnation may not 
directly or indirectly identify any client in 
any report of the research or audit or 
otherwise disclose client identity in any 
way. 

(3) A qualified professional may disclose client 
record information when he determines 
that such disclosure is necessary' to protect 
against clear and substantial risk or immi- 
nent serious injur\", disease, or death being 
inflicted b\- the inmate on himself or oth- 
ers, or a threat to the security of the unit. 

(4) Information in the client record shall be 
disclosed if a court of competent jurisdic- 
tion issues an order compelling disclosure. 

(5) Information may be disclosed in accord- 
ance with the provisions of G.S. 
122C-55(c). 

(d) Confidential information regarding sub- 
stance abusers shall be released or disclosed in 
accordance with federal rules 42 C.F.R. Part 2, 
"Confidentiality of Alcohol and Drug Abuse Pa- 
tient Records", unless the rules in this Subchap- 
ter are more restrictive in which case the rules in 
this Subchapter shall be followed. 

(e) LmploNccs governed b>- the State Persomiel 
Act, G.S. Chapter 126, are subject to suspension, 
dismissal or disciplinary' action for failure to 
comply with the mles in this Subchapter. 

(f) Records shall be protected against loss, 
tampering, or use by unauthorized persons and 
shall be readily accessible at all times. 

fg) The Department shall make known to all 
employees, students, volunteers and all other in- 
dividuals with access to confidential information 
the provisions of the mles in this Subchapter. 
Such individuals shall indicate an understanding 
of the requirements governing confidentiality by 
signing a statement of understanding and com- 
pliance. I'mployees shall sign such statement 
prior to access to any confidential information 
and, again, whenever revisions arc made in the 



confidentiality requirements. Such statement 
shall contain the following information: 

(1) date and signature of the individual and 
his title, if applicable; 

(2) service deliver)" site; 

(3) statement of understanding; 

(4) agreement to hold information confiden- 
tial; and 

(5) acknowledgement of disciplinarv' action for 
improper release or disclosure. 

(h) When consent for release of information is 
obtained in accordance with the rules in this 
Subchapter, a consent for release of information 
form containing the information set out in this 
Rule shall be utilized. 

( 1 ) The consent fonn shall contain the fol- 
lowing information: 

(A) client's name; 

(B) name of facility releasing the informa- 
tion; 

(C) name of individual or agency to whom 
information is being released; 

(D) infonnation to be released; 
(Ej purpose for the release; 

(F) length of time consent is valid; 

(G) a statement that the consent is subject 
to revocation at anv' time except to the 
extent that action has been taken in reli- 
ance on the consent; 

(H) signature of the client or the client's 
legally responsible person; 

(I) signature of individual witnessing con- 
sent; and 

(J) date consent is signed. 

(2) A consent for release of information shall 
be valid for a period not to exceed one 
year. 

(3) A consent for release of infoimation re- 
ceived from an individual or agency not 
covered by the rules in this Subchapter 
does not have to be on the torm utilized 
by the Department; however, the Mental 
Health Program Director or Substance 
Abuse Program Director shall detenninc 
that the content of the consent fonn sub- 
stantially conforms to the requirements 
set forth in this Rule. 

(4) A clear and legible photocopy of a consent 
for release of information may be consid- 
ered to be as valid as the original. 

(5) Consent may be withdrawn bv written re- 
quest of the client at any time following 
its inception. 

Slatulon Aulhority G.S. I4S(d)i /Q). 
.2005 DI.VGNOSTIC CODING 



NORTH CAROLINA REGISTER 



970 



PROPOSED RULES 



I'hc Department shall code diagnoses for clients 
using the tbllowing diagnostic systems: 

(1) Mental illness, mental retardation or sub- 
stance abuse shall be diagnosed according to 
the Diagnostic and Statistical Manual of 
Mental Disorders, 3rd I'dition - Re\ised 
(DSM-lIl-R). 

(2) PliNsical disorders shall he diagnosed ac- 
cording to International Classification of 
Diseases, 9th Re\ision, Clinical Modifica- 
tion (ICD-9-CM). 

Statuloiy Authority G.S. l4Sidj(l9). 

.2006 IRANSI KK ()!• CI IKM KKCORDS 

The Department shaU develop and implement 
procedures which shall specifically address trans- 
portation of client records by persons other than 
qualified professionals consistent with other rules 
of this Subchapter. 

Statutory Authority G.S. l4Sid}( 19). 

.2007 CI IKM KI CORD A\ All AHII ITV 

The Department shall dc\elop and implement 
procedures which shall make client records 
a\ailable to professional staff for a minimum of 
three \ears. This shall appl_\ to pre\"ious 
incarceratit^ns. 



(b) The policy shall designate who is deemed 
qualified to make screening determinations. 

Staiutoiy Authority G.S. I48(d)( /9j. 

.2104 SKRMCK TL RI'O.SK AND 

FLKilBII ITV RKQl IREMENTS 

The Department shaU de\elop written policies 
addressing eligibility for service requirements for 
each ser\ice dehvery site including admission, 
treatment or habilitation, and discharge criteria. 

Statutoiy Authority G.S. l4S(d}{19). 

.2105 W AHIN(7 I ISIS 

Ihc Department shall develop written policies 
concerning waiting lists for mental health, mental 
retardation, and substance abuse services in the 
prison system. 

Statutoiy Authority G.S. I4S(d)fJ9). 

.2106 IMORM AIION RKtiARlMNG 
A\ AII.AHIIIIA ro SEK\ ICES 

The [department shall ensure that each inmate 
is infonned of procedures for seeking access or 
referral to mental health, mental retardation, and 
substance abuse services at each ser\ice delivery 
site. 



Stdlutoty Authority G.S. l4Sld}( 19). 

SECnON .2100 - MIM AI IIEAMII, MENTAL 
REIWRDAIION AM) SI HSIANC K AlU SE 

SER\i( E El i(;imi,HA 

.2101 SCOPE 

The standards in this Section appl\- to each ser- 
vice deli\er)' site within the I^epartment and to 
any other pro\ider of services on a contractual 
basis. 

Statutory Authority G.S. l4S{dl(I9). 

.2102 POLICE REQl IREMENTS 

Through the adoption of policy, the Depart- 
ment shall delineate the inmate population for 
which its mental health, mental retardation, and 
substance abuse ser\ices are intended as well as 
the criteria of senice eligibility. Such policies 
shall be communicated to inmates. 

Stalutflty Authority G.S. l4Sid)(l9). 

.2I(),< S( REEMNt; 

(a) 1 he Department shall de\elop written pol- 
icies establishing a systematic means of screening 
each inmate at initial contact b\ inter\iewing the 
inmate to determine lus need for ser\"ices. 



Statutoiy Authority G.S. /4Sid)( /9). 

SEC HON .220(1 - IREA IMEM AM) 
IIABIin.VnON 

.2201 SCOPE 

(a) The standards in this Section apph' to each 
service deli\cry site within the Department and 
to any other pro\'ider of ser\ices on a contractual 
basis. 

(b) rhe process of treatment or habilitation 
shall incoiporate activities and procedures that 
address, in a compriihensi\e manner, the client's 
assets and needs from the point of initial contact, 
through acti\e treatment or habilitation. and after 
discharge. Ihe process shall be designed to en- 
sure that the established treatment or habilitation 
goals have continuing appropriateness for the 
client and that services are pro\ided m the least 
restrictive environment. 

Statutoiy Authority G.S. l4S{dl{ 19). 

.2202 .VDMISSION ASSESSMENT 

(a) tach ser^■ice deli\er>' site shall have written 
procedures for an admission assessment. 

(b) These procedures shall deUneate the stand- 
ardized mformation required which at a mini- 
mum shall include; 



9"/ 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(1) admission note within 24 iTours of admis- 
sion; 

(2) tlie present eondition of the client reported 
in objective, beha\ioral terms, and where 
possible a description of the client's con- 
dition by others; 

(3) social, educational, and medical histories 
and, if appropriate, vocational, de\elop- 
mental, psychiatric, legal and nutritional 
histories; 

(4) determination of and request for additional 
referrals for special diagnostic tests, as- 
sessments or evaluations, if needed; 

(5) reason for admission; and 

(6) preliminan,' individual treatment or habil- 
itation plan. 

Slalutoiy Authority G.S. l4Sid>( 19). 

.2203 E\ ALl Al ION AM) DIAGNOSIS 

(a) Each service delivery site shall specify in 
writing any routine diagnostic tests, assessments 
and e\aluations or medical examinations, as well 
as time frames for their completion, which shall 
be completed for each client. 

(b) Diaanoses shall be established usins 
DSM-III-R^and ICD-9-CM. 

Statutoiy Authority G.S. l4Sidl(l9). 

.2204 I RKAIMKM OR IIABILITA HON I'l.AN 

(a) Cach service deli\er\' site shall develop an 
individualized treatment or habilitation plan for 
each client based upon an evaluation of his con- 
dition, assets and needs. This plan shall pro\ide 
a systematic approach to the treatment or habil- 
itation of the client and substantiate the appro- 
priateness of cuiTcnt treatment or habilitation 
goals. CUnical responsibility for the development 
and implementation of the plan shall be desig- 
nated. 

(b) The treatment or habilitation plan shall be 
consistent with the diagnosis and shall be docu- 
mented in the client record as follows: 

(1) A comprehensi\e treatment plan or habil- 
itation plan shall be de\eloped within 30 
days of admission to outpatient or resi- 
dential ser\'ices or within ten days of ad- 
mission to inpatient ser\ices. 

(2) 1 he treatment plan or habilitation plan 
shall be based upon information gathered 
during the admission assessment process. 

(3) The treatment plan or habilitation plan 
shall include at least the diagnosis, time- 
specific short- and long-tenn measurable 
goals, staff responsibility for plan imple- 
mentation and a summar\' of client and, 



if appropriate, family strengths and weak- 
nesses. 

(4) Progress notes shall be recorded on at least 
a weekly basis in residential and inpatient 
ser\'ices and following each scheduled ap- 
pointment in outpatient services. Pro- 
gress notes shall reflect the client's 
progress or lack of progress toward meet- 
ing goals, staff interventions, information 
which may ha\e a significant impact on 
the client's condition, and indicate reviews 
of relevant laboraton,' reports and actions 
taken. 

(5) The comprehensi\e treatment plan or ha- 
bilitation plan shall be revised whenever 
medically or clinically indicated and must 
be thorouglily reviewed at least every six 
months with such review documented in 
the plan. 

(c) The treatment plan or habilitation plan 
shall be developed in partnership with the client 
or individual acting on behalf of the client whe- 
never possible. 

Statutory Authority G.S. I4^(d)( 19). 

.2205 TRANSFKR OR DISCHARCiE SIMMARV 

(a) Whenever a client is transferred to a differ- 
ent level of service, a written transfer note by the 
referring unit shall accompany the client which 
summarizes the client's condition at the time of 
transfer and an\' recommendations for continued 
care. A qualified professional in the recei\ing 
unit shall evaluate the client to determine the 
need for continued treatment or habilitation. 

(b) At the time of discharge from a service de- 
livePi' site, a discharge summarv' shall be com- 
pleted which includes the reason for admission; 
course and progress of the client in relation to the 
goals and strategies in the individual treatment 
or habilitation plan; condition of the client at 
discharge; recommendations and arrangements 
for further ser\ices or treatment; and final diag- 
nosis. 

Statutoiy .iuthority G.S. 14S(d)il9). 

.2206 IRKAIMKM AM) MAIJII.I I AriON , 
COORDINAIION 

(a) Coordination shall be maintained among 
all staff members contributing to the e\aluation, 
planning, and treatment and habilitation efforts 
for each client. 

(b) L'ach service deli\er\ site utilizing shifts or 
relief staff shall de\'elop mechanisms to ensure 
adequate communication among staff regarding 
clients. 



NORTH CAROLINA REGISTER 



972 



PROPOSED RULES 



Suitutoty Authority G.S. l4H(d)(l9). 

.2207 KKLEASK PL ANM\(. 

(a) When release of a client can be anticipated 
and the need for continued treatment has been 
identified, each client shall ha\e a written indi- 
\idualized aftercare plan. 

(b) The aftercare plan shall: 

(1) be fonTiulated by qualified professionals; 

(2) inform the chent of where and how to re- 
cei\e treatment or habilitation services; 

(3) identify continuing treatment or habili- 
tation needs, and address issues such as 
food, housing, and empknment; 

(4) indicate the need and plan, if applicable, 
to in\(iluntaril\' commit (inpatient or 
outpatient ); 

(5) in\ol\e the respecti\e area program or 
state facility when indicated; 

(6) address the procurement and a\ailability 
of medication prescribed for mental 
health, mental retardation, or substance 
abuse problems for the released inmate 
regardless of his ability to pay; 

(7) address the use and coordination of generic 
resources in the communit\' (e.g. I'm- 
ployment Security Ser\ices, Vocational 
Rehabilitation Senices. communit\' col- 
leges, YMCA, etc.); and 

(S) be pro\ided to the chent. 

(c) (he Department shall establish written 
policies and procedures to ensure that e\er\' rea- 
sonable effort is made to assist a client in ob- 
taining needed services upon release. The 
policies and procedures shaU include the desig- 
nation of qualified professional staff to assist the 
client in establishing contact with the respective 
area program or state facility and furnishing in- 
formation to ensure continuity of treatment. 

Statutiny Authority G.S. NS( dj( J') ). 

SKCTION .2-^00 - ( I.IMC AL ,SKK\ ICKS 

.2.^01 SCOI'K 

(a) The standards in this Section apply to each 
senice deli\eiT site and to any other provider of 
senices on a contractual basis that incorporate 
clinical services in their acti\ ities. 

(b) The pro\ision of clinical services, including 
indi\idual and group counseling and psychother- 
apy senices, testing senices and specialized ther- 
apies of \'ai"ious kinds shall be pro\idcd by 
qualified staff as an essential component of the 
treatment or habilitation process. 

.Statutoiy Authority G.S. 14S{d)(l9). 



.1M)2 COl NSKIING AND PSVCIIOTI IKRAF'Y 
SKRMCKS 

Indi\idual, group and family counseling and 
psychotherapy shall be pro\ided by, or under the 
direct supenision of, qualified professionals who 
have received training in these treatment or ha- 
bilitation modalities. 

Statutory Authority G.S. l4S(d)(l9). 

.2.^03 SPECIALIZED TIIER.\PIES 

Medical care, physical therap\ , occupational 
therapy, language and commumcation therapy, 
and nursing care shall be provided by, or under 
the direct supen'ision of, staff licensed or regis- 
tered to perform these actisities. 

Statuto)y Authority G.S. l4S(dl(l9). 

.2.^04 IKS 1 1\(; SERMCES 

Psychological, developmental, educational and 
intelligence testing shall be perfonned b\" indi- 
\iduals who are licensed, certified, or trained and 
supenised to utilize the particular testing instru- 
ment being administered. 

Stdtuioiy Authority G.S. l4S(d)(l9i. 

SECnON .24(10 - MEDICAL SERMCES 

.2401 SCOPE 

1 he standards in tliis Section apply to each ser- 
vice delivery site and to any other pro\ider of 
scn'ices on a contractual basis that proside med- 
ical senices. 

Statutory Authority G.S. /4S(dj( 19). 

.2402 PHYSICIAN RESPONSIBLE FOR 

PROMSION or MEDICAL SERMCES 

.\ ph\sician shall ha\e responsibility for the 
provision of medical senices associated with 
mental health, mental retardation, and substance 
abuse needs of clients. Such senices include, but 
need not be limited to. e\aluating medication 
needs, prescribing of niedications. the ordering 
of laboratop,' tests to assist in the diagnosis and 
monitoring of problems associated with the 
mental health, mental retardation, or substance 
abuse disorders of clients, and proper referral to 
other medical specialists when indicated. 

Statutoiy Authority G.S. l4S.idl{l9l. 

.2403 CLIENT EYVLL ATION BV A PHYSICIAN 

Lach chent shall be e\aluated by a phvsician 
prior to the pro\ision of medical senices associ- 
ated with mental health. ment;d retardation, or 
substance abuse needs of the client. 



9"? 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Statutor}' Authority G.S. 148(d) (19). 

SECTION .2500 - MEDICAIION SKRMCKS 

.2501 SCOPE 

The standards in tliis Section apply to each ser- 
vice dcli\'cry site and to any other pro\'ider of 
services on a contractual basis that provide med- 
ication services. .Medication services include the 
prescribing, dispensing, administration, storage, 
and control of medication and the pro\ision of 
education to those clients who are placed on 
medication for problems associated with mental 
health, mental retardation, and substance abuse 
disabilities and needs. 

Statutoiy Aul/iorily G.S. l4S(d)(l9). 

.2502 I'KISCKimNf; or MEDICATION 

(a) Only a physician or person authorized by 
state law shall be pemiittcd to prescribe legend 
diTigs. 

(b) A physician or person authorized to pre- 
scribe legend drugs shall approve the use of non- 
prescription medications and standing orders. 

(c| A physician assistant shall not prescribe 
psychotropic medication unless authorized by the 
N.C. Board of .Medical F.xaminers. 

(d) A nurse practitioner shall not prescribe 
psychotropic medication unless authorized by the 
N.C. Board of Medical Hxaminers and the Board 
of Nursing. 

(e) F.ach medication prescribed by the medical 
services shall be documented in the client's record 
and signed by the prescriber. 

(f) The chent's drug therapy regimen shall be 
assessed by a physician for appropriateness at 
least even," 60 days in outpatient and residential 
services and e\cry 30 days in inpatient services. 

Statiitojy Authority G.S. /4S(d)(/Q). 

.250.1 DISPENSING Oh MKDK VI ION 

(a) .Medication shall be tlispensed by a phar- 
macist or physician in a properly labeled con- 
tainer in accordance with state and federal law. 

(b) The medication container shall protect 
medication from liglit and moisture and shall be 
in compliance with the Poison Pre\ention Pack- 
aging Act. 

(c) The medication container label shall include 
the following: 

( 1 ) inmate's name; 

(2) date issued or refilled; 

{}} directions for administration; 
(4) medication name and strength; 



(5) name, address and telephone number of 
dispensing site; 

(6) prescriber's name; 

(7) dispenser's name; and 

(8) ancillary cautionary labeling. 

Statutory Authority G.S. l4H{d}( 19). 

.2504 ADMINISI RAIION OF MEDICATION 

(a) Prescription medication shall be adminis- 
tered in service deliver}' sites only on the written 
or verbal order of an authorized prescriber. 

(b) Non-prescription medications and standing 
orders shall be administered only on the written 
appro\al of a physician or person authorized to 
prescribe legend drugs. 

(c) ()nl\ properly dispensed medication shall 
be administered. 

(d) Medication shall be administered in inpa- 
tient psychiatric services only by a physician, 
physician assistant or nurse. In other service 
deliver^' sites, medication may be administered 
by program or coiTectiv)nal staff who have re- 
cei\ed ceilified training. .Self-administrations of 
medication may be supervised b\' program or 
correctional staff who have received instruction 
about each medication, dosage, time of adminis- 
tration, side effects and contraindications from 
either the program's physician or designee. 

(e) A li.st of persons approved to administer 
medication shall be maintained by the service 
deliver)' site. 

(f) A physician shall approve the self-adminis- 
tration of prescription medication. The compe- 
tent adult client may self-administer medication. 
Where applicable, clients shall receive instruction 
in the self-administration of medication. 

(g) 'I'he administration of medication by staff 
shall be documented in the client recc>rd on an 
indi\idualized medication administration record 
which shall contain a record of doses adminis- 
tered. 

(h) Medication administration errors and ad- 
verse drug reactions shall be rccorvied in the client 
record and reported to the attending ph)sician. 

Statutory Authority G.S. /4.\(d)( /9J. 

.2505 IN\()H NTAK\ ADMIMSTKAIION OP 
PSYCHOTROPIC MEDICAIION 

(a) Psychotropic medicaticin may be h)rcibl\' 
administered if: 

(1) failure to treat the inmate's illness or injurv' 
would pose an imminent substantial 
threat or injury or death to the inmate or 
those around him; or 

(2) there is e\idence of a worsening of the in- 
mate's condition which, if not treated, is 



NORTH CAROLINA REGLSTER 



974 



PROPOSED RULES 



likely \o produce acute exacerbation of his 
ciuulition such that his safety or that of 
others would he endangered. The evi- (2) 

dence of substantial and prolonged deteri- 
oration must be corroborated by the 
medical history. The source of the history 
must be documented in the inmate's re- 
cord. 

(b) A medication refusal e.xisls when an inmate 
indicates by strong words or gestures, or other- 
wise demonstrates a definite unwillingness to take 
medication. /Vny inmate who accepts medication 

witliin 30 minutes of the initial offer shall not be (3) 

considered to ha\e refused medication. 

(c) Whenever a client refuses a prescribed 
medication: '"*' 

(1) an entry to this effect must be made m the 
client recc:)rd; 

(2) all incidents of medication refusal shall be 
reported as promptly as possible to the 
psNchiatrist treating the client; 

(.1) all incidents of medication refusal shall be 
entered on the progress notes and medi- 
cation chart, Fonn DC- 175, by the med- 
ical staff responsible for atlministering the 
medication; 

(4) staff shall attempt to determine the cause 
of the refusal by questioning the client and 

efforts to encourage hun to accept the /<;, 

medication shall be made and docu- 
mented in the record: and 

(5) the treatment team shall discuss the rea- 
sons tbr refusal directly with the inmate 
and shall attempt to resolve those con- 
cerns which are the source of the refusal. 
These persuasi\e efforts may include call- 
ing on the resources of other asailable 
staff but shall not be coerci\'c. Such 
counseling shall be attempted in an iso- 
lated area awa\' from the scene of agi- 
tation. 1 he inmate's comments, if any, 

shall be noted. (6) 

(d) I'pon the occurrence of a medication re- 
fusal, the physician shall e\aluate whether to ad- 
minister medication o\er the inmate's refusal: 

(1) If the physician detennines that the con- 
(.lition set tbrlh in (a)( I ) tif this Rule; and 
(.A) the medication is a generally accepted 
treatment for the inmate's condition, 

(B) there is a substantial likelihood that the (7) 
treatment will eftecti\ely reduce the signs 

and symptoms of the inmate's illness, and 

(C) the proposed medication is the least 
intmsne trom a therapeutic \iewpoint oi 
the possible treatments. 

then an imoluntary medication order may 

be issued. In all cases, the medication (e) 



shall not exceed the dosage expected to 
accomplish the treatment objective. 
If a psychiatrist believes that the condition 
set forth in (a)(2) of this Rule are met, he 
shall refer the matter to an Involuntary 
.Medication Committee which shall deter- 
mine whether the condition as set forth in 
(a)(2) of this Rule exists and whether an 
involuntary medication order should be 
issued. In making its detennination, the 
Committee shall apply the criteria set 
forth in (c) and (d)(1) of this Rule. 
If neither of the conditions set forth in (a) 
of this Rule exists, the Lnmate's refusal to 
accept the medication will be honored. 
In the case where a condition set forth in 
(a) of this Rule is likely to continue for 
14 days, an in\oluntary medication order 
may be issued on an as necessary (PRN) 
basis for a period not exceeding 30 days 
subject to the approval of the Involuntary 
Medication Committee. Near the con- 
clusion of the 3()-day in\oluntan medica- 
tion order, if the inmate still refuses to 
accept medication essential to pre\ent the 
recurrence of the conditions which justi- 
fied the initial administration of the medi- 
cation, a referral to the In\oluntar>- 
.Medication Committee shall be made. 

Prior to the forceful administration of 
medication in response to a I'RN order, 
the nurse or ph\sician's assistant shall 
notify his immediate supervisor and ad\ise 
him of the circumstances. If the respon- 
sible psychiatrist is immediately available, 
he too shall be notified. Should the psy- 
chiatrist not be immediately awiilable, the 
immediate supervisor, if he decides that 
the medication is needed, shall grant per- 
mission to the attending health profes- 
sional to administer the prescribed 
medication in response to the PRN order. 

In cases where an involuntary 30-da\' 
medication order is issued due to a treat- 
ing psychiatrist's detennination that med- 
ication may have to be administered 
pursuant to (a) of this Rule, the In\'olun- 
tary Medication Committee shall re\iew 
the order within 14 days to determine 
whether it should be continued. 
At the conclusion of a 3()-day in\oluntar\ 
medication order, if the client continues 
to refuse \'oluntary medication, that re- 
fusal shall be honored unless the In\ol- 
untary .Medication (Committee has met 
and determined that the conditions in (a), 
(c), and (d)(1) of this Rule are met. 
In\oluntar\ Medication Committee: 



975 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(1) The Involuntary Medication Committee 
shall be appointed by the Director of the 
Division of Prisons and consist of a psy- 
chiatrist, a psychologist, and a mental 
health nurse. 

(A) If the psychiatrist who issued the in- 
voluntary medication order or wrote a 
PRN order is the individual who normally 
sits on the Committee, another psychia- 
trist shall serve in his place; however, the 
psychiatrist who issued the involuntary 
medication order may be requested by the 
Committee to be present to respond to 
any inquiries. 

(B) Other prison staff, e.g., nursing staff, 
case manager, counselors, social workers, 
custody staff etc. shall be encouraged to 
attend the Committee meeting and par- 
ticipate in order to provide pertinent in- 
formation that would be useful to the 
Committee in making its determination. 

(2) Whenever the treating psychiatnst deter- 
mines that the inmate must be treated 
without his consent pursuant to (a)(2) of 
tliis Rule, the inmate may request to ap- 
pear before the Committee to state his 
reasons for refusing consent. lie may 
appear for the purj^osc of stating his case 
only and shall be excused from the meet- 
ing after he has spoken. No inmate shall 
be refused the opportunity to appear be- 
fore the Committee unless the Committee 
makes a prior determination that the in- 
mate's condition is so serious that he 
cannot communicate. 

(3) The three members of the Committee shall 
determine whether the in\oluntary medi- 
cation order will be continued. 

(4) At any time the Committee may have 
questions concerning the legal propriety 
of forcibly administering medications in a 
given case, it shall consult an attorney on 
staff of the Department or an attome_\' in 
the Attorney General's Office assigned to 
represent the Department. 

(f) Patient Representative: 
(1) \\'hene\er an inmate refuses medication 
as defined in (a)(2) of this Rule, the 
.Mental Health Program Director or his 
designee shall appoint a member of the 
treatment staff to serve as a patient repre- 
sentative. The role of the patient repre- 
sentative shall be to assist the inmate in 
verbalizing the reasons for his refusal in 
meetings with his treatment team and be- 
fore the ln\oluntary .Medication Com- 
mittee. 



(2) A summary of the reasons for the refusal 
shall be recorded in the client's record. 

(3) The personal representative shall appear 
before the Involuntary Medication Com- 
mittee whenever he feels that it is in the 
best interest of the client or at his request. 

(4) When reviewing any case involving the 
involuntary administration of medication, 
the Involuntary Medication Committee 
shaU consider oral or written comments 
from the patient representative. 

(5) No patient representative shall be subject 
to discipline for acting on behalf of a pa- 
tient in accordance with this policy. 

(g) Complete documentation of all actions re- 
lating to the forceful administration of medica- 
tion shall be included in the client's record. 

Statutory Authority d.S. l4S(d)(l9). 

.2506 STORACK OF MKDIC.VHON 

All medication shall be stored as follows: 

(1) Medication shall be stored under proper 
conditions of sanitation, temperature, light, 
moisture and ventilation. 

(2) Medication shall be stored in a securely 
locked cabinet. 

(3) Ordy those persons authorized to prescribe 
or administer medication shall ha\e access 
to stored medication. 

(4) Mcdicaticm for external use shall be segre- 
gated from medication for internal use. 

(5) Medication stored in a refngerator used for 
other purposes shall be kept in a separate, 
securely locked compartment. 

(6) Space for medication storage shall be of 
sufficient siy.e to allow separate storage of 
each client's medication and to present ov- 
ercrowding. 

Statutory Authority G.S. l4S(d)(l9). 

.2507 DISPOSAL Ol- MK.DICAIION 

.Medications shall be disposed of in the follow- 
ing manner: 

(1) C'ontrolled substances. In consultation 
with a phamiacist, the service deli\ery site 
shall adopt procedures for the disposal of 
controlled substances consistent with state 
and federal laws. 

(2) Non-controlled substances (prescription 
medication). 

(a) Any service delivery site disposing of pre- 
scription medication shall do so in a 
manner that guards against di\crsion and 
accidental ingestion. The preferable 
method of disposal is by incineration 
whenever available. Other acceptable 



NORTH CAROLINA REGISTER 



976 



PROPOSED RULES 



methods of disposal may include, but 
need not be limited to, the following: 

(i) transfer of medication to a pharmacy for 
destruction; or 

(ii) tlush into a sewer system, 
(b) A record of medication disposal shall be 
maintained. The record shall include the 
following: 

(i) client's name (if applicable); 

(ii) name and strength of medication; 

(iii) drugstore name and prescription num- 
ber (if applicable); 

(iv) quantity to be disposed; 

(v) method of disposal; 

(vi) date of disposal; 

(vii) signature of employee disposing of the 
medication; and 

(viii) signature of cmplo\ee witnessing the 
disposal. 

Statiilo/y Aut/wnty G.S. /4S(d)(/Q). 

.2508 I'SVCIIOIROI'IC MKDICMION 

KDl c.vnoN 

(a) bach cUent to be stalled or maintained on 
psychotropic medication shall receive indi\idual 
or group education regarding the prescribed 
medication. The following information shall be 
pro\idcd to the client by the prescribing physi- 
cian or other person approved by the physician: 

(1) at the time the medication is ordered: 

(A) the name, appearance and dosage regi- 
men, intended use and common side ef- 
fects of the medication; 

(B) adverse reactions or uncomfortable side 
effects that should prompt calling a phy- 
sician; and 

(C) food, drugs or beverages that should 
be avoided or taken with medication. 

(2) at the time of the client's release from 
prison: 

(A) an alternative dosage regimen if a dose 
is missed; 

(B) the expected length of the medication 
treatment; 

(C) refill instructions; 

(D) the proper place to store medication; 
and 

(E) the need to communicate and coordi- 
nate with other physicians if applicable, 
regarding any other medications pre- 
scribed at the sen,'ice dcli\ery site. 

(b) .Medication education provided shall be in- 
dividualized for each client and documented in 
the client record. 

(c) Medication education siiall be coordinated 
\sith the discharging or recei\ing program. 



Statutory Authority G.S. 148(d) (19). 

SFXTION .2600 - F'RO TFXTIONS REGARDING 
CERTAIN I'ROCEDLRES 

.2601 SCOPE 

'! he rules in this Section specify protections re- 
garding the use of certain specified procedures in 
order to promote dignity and humane care for 
inmates receiving mental health, mental retarda- 
tion, and substance abuse ser\'ices. 

Statutory Authority G.S. I48(d)(l9). 

.2602 GENERAL POLICIES AND 

PROCEDL RES REGARDING THE I SE 
OF TIIERAPELTIC SECLLSION .VND 
RESIRAINF 

(a) l-'or the purpose of the niles in this Sub- 
chapter, seclusion and restraint are therapeutic 
modahties for use with mentally iU chents who 
do not possess the capacity for rational control 
of their beha\ior. 1 hc\' shall be used only to 
establish prompt control of cUents who are ex- 
periencing medical or emotional crisis or to pre- 
vent such crisis from occurring based on 
substantial evidence that a crisis is likely to occur 
gi\en past liistory or the circumstances of the 
present situation. The use of seclusion and re- 
straint in this Section is distinguished from its use 
for administrative purpose. 

(b) li.xcept in an emergency as delineated in 
Rules .1303 and .1304 of tliis Subchapter, seclu- 
sion and restraint shall be used only in a resi- 
dential or inpatient service deh\er\' site. 

(c) Hach Mental Health Program Director shall 
develop and implement policies and procedures 
regarding the use of emergency seclusion and re- 
straint for clients and, if apphcablc. their use on 
a non-emergency basis. Such policies and pro- 
cedures shall include provisions to ensure that: 

(1) areas used for the ijntervention provide for 
humane, secure, and safe conditions in- 
cluding ventilation, light, and room tem- 
perature consistent with the rest of the 
service delivery site; 

(2) attention is paid to the need for fluid in- 
take and regular meals, bathing, exercise, 
and the use of a toilet. Such attention 
shall be documented in the client record; 
and 

(3) in residential and inpatient service delisen" 
sites, each client is informed when seclu- 
sion or restraint is authorized for use as a 
pai1 of his treatment regimen. 

(d) When seclusion or restraint has been used 
with the same chcnt three or more times in a 
calendar month, an addendum to his treatment 
or habilitation plan shall be developed within ten 



97 



i\ORTH CAROLINA RECLSTER 



PROPOSED RULES 



working days of the third intervention. The ad- 
dendum shall include: 

(1) indication of need for the intervention; 

(2) specific description of the problem behav- 
ior; 

(3) specific early interventions to use as alter- 
natives to seclusion or restraint; and 

(4) guidelines for discontinuation of the in- 
tervention. 

(e) In addition to other observations, reviews, 
and documentation as rcquu-cd in Rules .1303 
and .1304 of this Subchapter, each Mental Health 
Program Director shall review all uses of seclu- 
sion and restraint and investigate unusual pat- 
terns of utilisation. 

(0 Each Mental Health Program Director shall 
maintain a record which includes the following 
information regarding each use of seclusion and 
restraint: 

(1) client's name; 

(2) name of the responsible clinician; 

(3) date, time, and duration of each inter- 
vention; and 

(4) reason for the use of the intervention. 

(g) The information as required in (f) of this 
Rule shall be reviewed by the Department on a 
monthly basis. 

Statutory Authority G.S. l4S(d)(l9). 

.2603 I SE OK SKd.l SION 

(a) Seclusion may be used only under one of 
the following conditions: 

(1) on an emergency basis when it is believed 
necessarv' to prevent immediate harm to 
the client or to others; or 

(2) on a non-emergency basis when it is be- 
lieved that seclusion will resolve the pre- 
senting situation or will produce the 
desired behavioral change. 

(b) I'mergency seclusion shall last no longer 
than is necessary to control the client. Consul- 
tation shall be made with a clinician within 12 
hours of the initial seclusion. Within 24 hours, 
there shall be face-to-face evaluation by a re- 
sponsible clinician. 

(c) No use of seclusion shall exceed seven days 
without the re\iew and approval of an internal 
committee in accordance with (e) of this Rule. 

(d) Observations or re\-iews of all clients in se- 
clusion shall be made as follows: 

(1) observations at least cverv' 30 minutes, 
with the exception of those on suicide 
precautions v\ho shall be checked e\'er>' 
15 minutes; 

(2) obscn'ations at least daily by a clinician 
or, when the clinician is not present at the 



facility, observations by a health profes- 
sional shall be reported by telephone with 
a clinician; and 
(3) reviews by an internal committee in ac- 
cordance with (e) of this Rule. 

(e) Committee review. 

(1) If it appears that seclusion may be indi- 
cated for a period to exceed seven days, 
an internal committee consisting of a cli- 
nician, a nurse or member of the medical 
staff, and a member of the administrati\e 
staff shall re\iew the use of seclusion and 
interview the client. Continued use shall 
not exceed the initial seven days without 
the appro\al of this Committee. 

(2) Following its initial review, the Committee 
shall review the case at intervals not to 
exceed 30 days. 

(f) When a client is placed in seclusion, liis cli- 
ent record shall contain documentation of the 
following: 

(1) the rationale and authorization for the use 
of seclusion including placement in seclu- 
sion pending review by the responsible 
clinician; 

(2) a record of the observation of the client 
as required in (d)(1) of this Rule; 

(3) each review by the responsible clinician 
as required in (d)(2) of this Rule including 
a description of the client's behavior and 
any significant changes which may have 
occurred; and 

(4) each re\iew b\' the internal committee as 
required in (c) of this Rule. 

Statutory Authority G.S. I48{dj{19). 

.2604 I SK Ol KKS IRAINF 

(a) Restraint shall be used only under the lol- 
lowing circumstances: 

(1) after less restrictive measures such as 
counseling and seclusion have been at- 
tempted or when clinicalh' determined to 
be inappropriate or inadequate to avoid 
such injurv'; and 

(2) after seclusion has failed or when such se- 
clusion alone is determined to be insuffi- 
cient to protect or control the client: and 

(3) upon the order of a clinician to control a 
client who has attempted, threatened, or 
accomplished harm to himself or others; 
or 

(4) upon the autlntri/ation of the officer-in- 
charge on an emergency basis when be- 
lieved necessarv' to prevent immediate 
harm to the client or to others. 

(b) Procedures for Restraint. 



NORTH CAROLINA REGISTER 



9~,V 



PROPOSED RULES 



(1) lixcept under the provisions of (c)(2) of 
this Rule, no client shall be restrained ex- 
cept by order of a clinician. 

(2) When determining if restraint is indicated, 
a clinician shall consider; 

(A) whether the client has inflicted an in- 
jurv' to himself or to others and, if so, the 
nature and extent of such injury'; or 

(B) whether the client, through words or 
gestures, threatens to inllict further injurv' 
and the manner and substance of the 
threat . 

(c) When a client exhibits behavior indicating 
the use of restraints and under the conditions of 
(a) of this Rule, the following procedures shall 
be followed; 

(1) If, in the judgment of any staff member, 
immediate restraint is necessary to protect 
the client or others, the client shall be re- 
ferred immediately to a clinician for ob- 
ser\ation and treatment. 

(2) If there is insufficient time to make the 
referral or if a clinician is not Immediately 
aw'iiiable; 

(A) the officer-in-charge ma>' employ 
emergencN' use of restraint; 

(B) within two hours of the initial restraint, 
the client shall be reviewed and a restraint 
order shall be issued by a clinician. This 
may be accomplished by telephone con- 
tact between the senior health professional 
at the facility and the clinician. If such 
review cannot be obtained, the client shall 
be released from restraint; 

(C) a restraint order shall not exceed four 
hours. At the expiration of a restraint 
order, the client shaU be released from re- 
straint unless a new order is issued; and 

(D) any subsequent order for continuing 
restraint shall be based on the client's 
condition and behavitir at that time and 
shall not merely recite the original reasons 
for restraint without some indication of 
why the original reasons are considered 
applicable at the time of the subsequent 
order. 

(d) Whenever the client is restrained and sub- 
ject to injur}' by another client, a professional 
staff member shall remain present with the client 
continuously. Observations and interventions 
shall be documented in the client record. 

(e) All orders for continuation of restraint shall 
be rc\iewcd in writing no longer than four hour 
inten.'als thereafter, either by personal examina- 
tion or telephone communication between health 
professionals and the responsible clinician. 

(f) All orders of restraint issued or approved 
b\' a clinician shall include written authorization 



to correctional staff or health professionals to re- 
lease the client when he is no longer dangerous 
to himself or others. 

(g) The responsible clinician shall be notified 
upon release of a client from restraint. 

(h) Observations or reviews of all clients in re- 
straint shall be made as follows: 

(1) obser\'ations at least every 30 minutes, 
with the exception of those on suicide 
precautions who shall be checked ever\' 
15 minutes; 

(2) obsen'ations every four hours by the re- 
sponsible clinician either personally or 
through reports from health professionals; 
and 

(3) reviews by an internal committee in ac- 
cordance with (i) of this Rule. 

(i) Committee re\'iew. An internal committee 
consisting of three members of the Department's 
clinical and administrative staff, including at least 
one psNchologist and one psschiatrist shall re- 
view cases in which restraints were used for ther- 
apeutic purposes be\ond four hours. The 
incident will be reviewed and include consider- 
ation of the following: 

( 1 ) the use of appropriate procedures in the 
decision to restrain; 

(2) sufficient indications for the use of re- 
straint; and 

(3) release of the client from restraint at the 
appropriate time. 

(i) When a client is placed in restraint, his client 
record shall contain documentation of the fol- 
lowing: 

(1) the rationale and authorization for the use 
of restraint including placement in re- 
straint pending review by the responsible 
clinician; 

(2) a record of the observations of the client 
as required m (h) of this Rule; 

(3) each review by the responsible clinician 
as required by this Rule including a de- 
scription of the client and any significant 
changes which may have occurred; and 

(4) each review by the internal committee as 
required in (i) of this Rule. 

Staluuny Authority G.S. l4Sid)(l9). 

.2605 I'KOIKC ri\K l)KM( KS 

(a) Whene\'er protecti\'e devices are utilized for 
clients, the Mental Health Pronram Director 
shall: 

(1) ensure that the necessity for the protective 
device has been assessed and approved by 
a mental health professional. The device 
shall be applied by a person who has been 



9^9 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



trained in the utilization of protective de- 
vices; 

(2) frequently observe the client and provide 
opportunities for toileting, exercise, etc. 
as needed. Protective devices which limit 
the chcnt's freedom of movement shall be 
observed at least ever>' two hours; and 

(3) document the utilization of protective de- 
vices in the client's medical record. 

(b) In addition to the requirements specified in 
(a) of this Rule, protective devices used for be- 
havioral control shall comply with the require- 
ments specified in Rules .1302 and .1304 of this 
Subchapter. 

Statut(ny Authmily G.S. I48(d}(l9). 

.2606 KKl KKKAL AM) IKANSI KR lO 

RESIDENTIAL OR INPATIENT UNITS 

(a) Only inmates who have diagnosable mental 
disorders and who are likely to benefit from 
mental health, mental retardation, and substance 
abuse treatment available at a residential or in- 
patient unit shall be referred and transferred. 

(b) Only inmates who meet the following cri- 
teria shaU he diagnosed as mentally retarded and 
referred and transferred to a residential unit for 
mentally retarded offenders: 

(1) an IQ of 69 or lower as measured by an 
individual intelligence test (i.e. Binet or 
WAIS-R); and 

(2) concurrent deficits or impairment in 
adaptive behavior. 

(c) Only inmates who ha\c a documented his- 
tory of substance abuse or who arc recommended 
by the Court shall be referred and transferred to 
a residential unit for substance abuse treatment. 

(d) To the greatest extent possible, the transfer 
of clients to a residential or inpatient unit shall 
be voluntary on the part of the inmate. 

(e) Referrals and transfers of inmates with 
mental illness or mental retardation shall occur 
only in accordance with the provisions of rules 
in this Subchapter. 

Sldluloiy Auihoriiy G.S. J48(d)(/9). 

.2607 INMAIE RIGHTS CONCFRNING 
TRANSIT R lO RESIDENTIAL OR 
INIVMIENI I NHS 

All inmates who are considered for transfer to 
a residential or inpatient unit have the following 
riglits: 
(1) written notice that transfer to a residential 
or inpatient mental health facility is being 
considered including a statement of the rea- 
sons for the referral or transfer; 



(2) a hearing sufficiently after notice is given to 
prepare objections, if any; 

(3) opportunity to testify in person, present 
documentary evidence, present witnesses 
and question witnesses called by the State, 
except upon a finding not arbitrarily made, 
of good cause for not permitting such pres- 
entation, confrontation, or cross-examina- 
tion; 

(4) a neutral and independent decision maker 
who may be from within the prison system 
but who has the authority to refuse admis- 
sion; 

(5) a written statement by the decision maker 
as to reasons for his decision to refer and 
transfer, with which two psychiatrists or 
psychologists concur; 

(6) qualified and independent assistance from 
an advisor, not necessarily an attorney, to 
assist the inmate in preparing his objections; 

(7) periodic review of the continuing need for 
treatment; and 

(S) effective and timely notice of all of the 
rights in this Rule. 

StatLitoiy Authority G.S. l4S(d)(l9). 

.260X VOLUNTARY REFERRALS AND 
IRANSEERS 

(a) Non-emergency referrals shall be forwarded 
to the mental health or mental retardation pro- 
fessional designated to receive such referrals at 
the service delivery site to which the inmate is 
assigned. 

(b) If the mental health, mental retardation, or 
substance abuse professional determines that the 
inmate is in need of services provided at a resi- 
dential or inpatient unit, the inmate wUl be given 
written notice of the reasons for the referral, the 
expected benefits of the treatment to be received, 
and his rights as described in Rule .1308 of this 
Subchapter. 

(c) If the inmate agrees to a voluntaiy transfer 
to the specified residential or inpatient unit, he 
will be asked to give written consent with witness 
by a member of the staff If the inmate refuses 
to sign the form yet \erbally agiecs, this fact must 
be documented by two witnesses prior to initiat- 
ing the transfer to the mental health unit. 

(d) The referring mental health or mental re- 
tardation professional shall complete the ncces- 
sar\' referral forms and arrange for the inmate's 
transfer. 

Statutoty Authority G.S. /4S(d)( 19). 

.2609 IN\OI LNT.\R\ REI ERRALS AND 
TR.KNSEERS 



NORTH CAROLINA REGISTER 



980 



PROPOSED RULES 



(a) Referrals and transfers on an involuntar>' 
basis shall occur only when an inmate requires 
treatment services not available at his current 
service delivery site and a transfer over his ob- 
jections is required. 

(b) Non-emergency involuntary referrals. If, 
in the judgment of the mental health or mental 
retardation professional, an inmate requires ser- 
vices provided at another residential or inpatient 
unit, the professional shall give the inmate a 
vsritten notice of referral for transfer and explain 
his rights in accordance with Rule .1308 of this 
Subchapter. If the inmate does not voluntarily 
consent to the referral and transfer, the following 
steps shall be taken: 

( 1) the inmate shall be pro\'idcd with the time, 
date and place of a hearing; 

(2) the Mental Health Program Director or 
his designee shall contact the hearing offi- 
cer to arrange a hearing; and 

(3) an inmate advisor shall be appointed and 
a hearing conducted in accordance with 
the procedures specified in the rules of this 
Subchapter. 

(c) Fmergency involuntary referrals. 

(1) Emergency procedures may be imple- 
mented only when an inmate is mentally 
ill; and 

(A) presents a substantial risk of harm to 
himself or others as manil'estcd by recent 
overt acts or recent expressed threats of 
violence which present a probability of 
physical injury to himself or to other per- 
sons; or 

(B) is so, unable to care for his own personal 
health and safety as to create a substantial 
risk of harm to himself. 

(2) Fmcrgcncy referrals shall be made by the 
mental health staff or the unit physician, 
nurse, or officer in charge after consulta- 
tion with the appropriate mental health 
staff of the receiving unit. The officer in 
charge shall autliorizc a transfer only un- 
der the following conditions: 

(A) in his opinion, the emergency referral 
criteria exists; and 

(B) reasonable efforts to contact a mental 
health professional ha\e failed. 

(d) An inmate who is transferred because he 
meets the criteria of an emergency will be af- 
forded a hearing at the recei\ing unit within ten 
days of admission. This hearing will follow the 
same procedures as those outlined in Rules .1308 
and .1309 through .1312 of this Subchapter. 

Statutory Authority G.S. NSidl('/Qj. 



.2610 IIKAKINC; OKFICRRS 

(a) The Chief of Mental I lealth Services shall 
recommend and the Director of the Division of 
Prisons shall appoint sufficient numbers of per- 
sons to serve as hearing officers. 

(b) Hearing officers shall be qualified, neutral, 
and independent and shall have the authority to 
refuse to transfer an inmate when in his judgment 
such a transfer is not justified. 

(c) Hearing officers shall: 

(1) ensure that an inmate advisor has been 
assigned and document this accordingly; 

(2) conduct a hearing that follows the proce- 
dures as specified in this Subchapter in a 
fair and impartial manner; and 

(3) determine from evidence presented 
whether the following criteria are met: 

(A) the inmate has a diagnosable mental 
disorder; and 

(B) a transfer to the designated unit is rea- 
sonable in view of the inmate's treatment 
or habilitation needs and the benefits ex- 
pected from the transfer. 

Statutory Authority G.S. I4S(d)(l9). 

.2611 INMAIK .\n\ISORS 

(a) L'ach inmate referred for a hearing shall 
have an advisor appointed to assist him in pre- 
paring for the hearing. 

(b) Fach area administrator or institution head 
shall be responsible for appointing advisors for 
all units within liis jurisdiction. 

(c) Inmate advisors shall be free to advise the 
inmate independently and to act solely in his be- 
half and shall not be subject to any harrassment, 
discipline, or pressure in connection with such 
ad\ice for the inmate. 

(d) Fx parte attempts to influence the decision 
of the hearing officer are prohibited. 

Statutoiy Authority G.S. l4S(d)(l9). 

.2612 MK.VRINC; PKOCKOl RES 

(a) The hearing shall be conducted no sooner 
than 48 hours from the time the inmate is given 
written notice that he is being considered for a 
referral to a residential or inpatient unit; houe\er, 
the inmate has the nght to wai\e the 48-hour 
notice. 

(b) The Heanng Officer shall determine the 
time, place and site of the hearing after consider- 
ing the relevant factors. 

(c) The referring psychologist or psychiatrist 
shall present sufficient testimon\' and written ev- 
idence at the hearing to show that: 

(1) the inmate has a diagnosable mental dis- 
order; 



981 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(2) the inmate requires services that are not 
currently available on an outpatient basis; 
and 

(3) the unit to which the inmate is to be 
transferred is better able to provide the 
needed treatment habilitation services 
than is the currently assigned housing 
unit. 

(d) A copy of the referral form as well as other 
relevant written documents may be entered as 
evidence. /Ml written documents or verbal in- 
formation is to be considered confidential in ac- 
cordance with client records policy. The inmate 
shall not have direct access to his client record. 
I lowever, the advisor may review all client record 
presented at the hearing and may consult with 
the inmate about their use at the hearing and 
about any matters therein which could be rele- 
vant at the hearing, including the questioning of 
all witnesses. 

(e) I'he inmate being considered for transfer 
or his ad\isor may question an}' witnesses for the 
State including mental health or mental retarda- 
tion professionals. The inmate may also present 
witnesses on his own behalf with the following 
limitations: 

(1) a reasonable number of witnesses will be 
allowed at the discretion of the Hearing 
Oftlcer; 

(2) testimony may be received by conference 
telephone call if the hearing is conducted 
away trom the inmate's assigned unit; 

(3) written statements may be entered in lieu 
of direct testimony; and 

(4) specific inmate witnesses may be excluded 
from direct testimony if a justifiable secu- 
rity risk would occur were they brought 
to the hearing site. 

(f) The I learing Officer shall document the re- 
sults of the hearing, clearly summarizing the evi- 
dence presented and the rationale for his decision. 

I'he results of the hearing will be communicated 
to the inmate and concerned staff and a copy of 
rele\ant documents placed in the client record. 
A copy of the report will he tiled in the appro- 
priate administrative records. 

(g') Two psNchiatrists or psychologists, one of 
which must be located at the receiving unit, shall 
concur with the hearing officer's decision. 

(h) The decision to transfer involuntarily is 
valid throughout the duration of the stay at any 
residential or inpatient unit with required 30-day 
reviews of the need for continued treatment or 
habilitation. An inmate may be transferred to 
another like unit without a rehearing, but if he is 
discharged from residential or inpatient scr\ices, 
a rchcanng is required prior to rcadmission to 
that level of service. 



(i) At the request of the inmate, his case shall 
be reviewed by a I learing Officer within 90 days 
after the initial hearing to determine whether the 
assignment to the residential or inpatient unit 
shall be extended or terminated. Subsequent re- 
views thereafter shall take place each 180 days if 
requested by the inmate. 

Statutory Authority G.S. 148(d) (19). 

SRCTION .2700 - RESEARCH PRAC IICES 

.2701 SCOPE 

The standards in this Section apply to each ser- 
vice delivery site and to any other provider of 
services on a contractual basis which are involved 
in research aclisities. This shall include research 
which; 

(1) in\'olves practice that is not standard or 
conventional; 

(2) involves a trial or special observation which 
would place the client at risk for injury 
(physical, psychological or social injurv), or 
increase the chance of disclosure of treat- 
ment; 

(3) utilizes elements or steps not ordinarily 
employed by qualified professionals treating 
similar disorders of this population; or 

(4) is a type of procedure that serves the pur- 
pose of the research only and does not in- 
clude treatment designed primarily to benefit 
the client. 

Statutory Authority G.S. l4S(d)(l9). 

.2702 RESEARCH REVIEW HOARD 

(a) Each research activity wliich involves clients 
in research activities shall be reviewed and ap- 
proved by a research review board established by 
the Department prior to the initiation of the re- 
search project. The research re\icw board is a 
group comprised of at least fi\e members which 
has the authority to approve, require modifica- 
tion, or disapprove proposed research projects 
subject to the approval of the Department. In- 
dividuals not directly associated with research 
projects under consideration shall comprise a 
majority of the review board. 

(b) Each proposed research project shall be 
presented to a research review board as a written 
protocol containing the following infonnation: 

(1) identification of project and investigator; 

(2) abstract, containing a short description of 
the project; 

(3) statement of objecti\es and rationale; and 

(4) description of methodolog>', including in- 
fonned consent if necessary. 



NORTH CAROLIN.A REGISTER 



9H2 



PROPOSED RULES 



(c) Prior to the initiation of each research pro- 
ject, a research review board shall: 

(1) conduct an initial review of the project; 

(2) state the frequency with which it will re- 
view the project after it has been initiated; 
and 

(3) hold a review prior to any major changes 
being made in research procedures. 

(d) Written minutes of each research board's 
meeting shall be maintained and contain doc- 
umentation that: 

(1) risks to chents were minimal and reason- 
able for the benefits to be accrued; 

(2) client participation was \oluntar\' and not 
a condition of receipt of inappropriate in- 
ducements; 

(3) unnecessary' intrusion on clients was 
elmiinated; 

(4) informed consent was appropriately pro- 
\ided for; and 

(5) confidentiality of clients was protected. 

Slatutofy Aiithorily G.S. /4S(dji/9). 

.2703 CONDITIONS OF CLIENT 
I'AKIICIP.ATION 

Informed written consent shall be obtained 
from each client in a research project as follows: 

(1) clients shall be informed of any potential 
dangers or risks that may exist as a result of 
participation; 

(2) clients shall be informed as to what their 
participation will entai.1 as related to time 
and effort, future follow-up, contacts with 
other people about them, and alterations of 
regular procedures; 

(3) documentation shall be made that the cli- 
ents ha\e been informed of any potential 
dangers that ma\" exist and that they under- 
stand the conditions of participation; 

(4) each client shall ha\c the right to tcnninate 
participation at any tune without prcjudicmg 
the treatment he is receiving: and 

(5) a copy of the dated, signed consent form 
shall be kept on file by the Mental Health 
Program Director or Substance Abuse Pro- 
gram Director. 

Stalutoiy Authority G.S. I4S(d}ll9). 

StCnON .2800 - KMl K(;KN( ^ SERVICES 

.2801 SCOI'E 

(a) Emergency mental health, mental retarda- 
tion, and substance abuse services shall be avail- 
able to all inmates. 

(b) Emergency services are scr^■iccs which pro- 
\ide immediate assessment and inter\"cntion as 



weU as referral for continuing care after emer- 
gency treatment for inmates experiencing acute 
emotional or behavioral problems or problems 
resulting from the abuse of alcohol or other 
drugs. Emergency services may consist of a va- 
riety of services such as crisis intervention, tele- 
phone crisis services, and medical and psychiatric 
back-up. 

Statutory Authority G.S. l4S{d)(19). 

.2802 l'RO\ ISION OF SER\ ICES 

Emergency services shall be provided 24 hours 
per day, seven days per week, 12 months per year 
as follows: 

(1) In outpatient service sites, emergency ser- 
vices shall be available through one or more 
of the following: 

(a) a prioritized on-call list; 

(b) referral to a local facility providing emer- 
gency services, as needed; or 

(c) referral to residential and inpatient services. 

(2) In residential and inpatient ser\ice sites, 
emergency services shall be available 
through one or more of the following: 

(a) 24-hour access to personnel trained in 
emergency services; 

(b) 24-hour telephone coverage; 

(c) provision for emergency hospital services; 
and 

(d) provision of emergenc\- back-up or con- 
sultation by a qualified mental health 
professional and a qualified alcoholism, 
drug abuse or substance abuse profes- 
sional. 

Statutory Authority G.S. I4S(dJ(I9j. 

.2803 TRAINING OF STAFF 

(a) Each pnson unit shall ha\'e staff trained to 
access and refer to emergency services. 

(b) Staff providing emergency services shaU be 
trained in the following: 



(1) 
(2) 
(3) 

(4) 

(5) 
(6) 



a\'ailable resources; 

interviewing techniques; 

characteristics of substance abuse, mental 

retardation and mental Ulness; 

crisis Lnten,'ention; 

making referrals; and 

commitment procedures. 



Statutory Authority G.S. I4S(dj(J9j. 

.2804 RE\ lEW AND FOI.EO\V-L P OF 

EMERGENC^ SER\ ICES l'RO\ IDED 

At least one staff member of the Department 
shall be designated to coordinate and supervise 
acti\ities of the emcrcencv mental health services 



9S3 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(2) 



(3) 



network. This person shall review emergency 
services records to assure that arrangements with 
treatment or habilitation staff are made for fol- 
low-up services. 

Statutoiy Authority G.S. l4S(d)(l9). 

SECTION .2900 - PREVENTION SERMCES 

.2901 SCOPE 

(a) Prc\ention ser\'ices shall include informa- 
tion, consultation, education and instruction for 
the custody staff and general population of the 
prison system and should be based on the fol- 
lowing philosophy: 

( 1) recognition of the need to promote broad 
health concepts and to increase inmate 
and custody staff understanding of the 
nature of mental illness, mental retarda- 
tion and substance abuse; 
recognition of the need to identify higli 
risk factors and responses to problems re- 
lated to mental illness, mental retardation 
and substance abuse; and 
commitment to early detection to reduce 
or eliminate the incidence of mental ill- 
ness, mental retardation and substance 
abuse while enhancing the self-worth and 
coping skills of the inmate. 
Prevention services shall direct their activ- 
ities and services to avoid the onset of mental 
dysfunctioning and to strengthen, protect and 
maintain social, physical, and psychological 
functioning of the prison population. 

Siatutnty Authority G.S. l4S(d)(l9). 

.2902 RECORDS 

(a) Records shall be maintained of all pre- 
\ention activities for the purpose of program 
monitoring and e\aluation. and shall include the 
following: 

name of group and pertinent character- 
istics of these recipients; 
date, time, and number of staff hours in- 
voh'ed; 

staff member responsible; 
number of persons scr\ed in each activity; 

topics covered, addressed, and focused 
upon during group presentations; and 
recipient feedback and evaluation of group 
presentations. 

(b) Records shall be maintained for a minimum 
of two years. 

Statutoiy Authority G.S. l4S(d)l 19). 

SECTION .3000 - INI'.M lENT SERMCES EOR 
INM.\TES WHO ARE MENTALLY ILL 



(b) 



(1) 

(2) 

(3) 
(4) 

(?) 
(6) 



..WO I SCOPE 

(a) Inpatient units for clients who are mentally 
ill shall provide 24-hour-per-day inpatient treat- 
ment services and close supervision under the 
clinical direction of a psychiatrist. 

(b) The inpatient shall be designed to serve 
clients who require continuous treatment for 
moderate or severe mental illness. Individuals 
who, in addition to mental iUness, have other di- 
sorders such as mental retardation or substance 
abuse, shall be eligible for admission. 

Statutory Authority G.S. I4S(d)(l9). 

..^02 HOI RS OK OPERATION 

The inpatient unit shall proxide services 24 
hours per day, seven days per week, 12 months 
per year. 

Statutory Authority G.S. I4S(d)(19). 

.3003 SIAEF REQMREI) 

(a) Staff shall include at least one of each of the 
following; psychiatrist, psychologist, psychiatric 
social worker and psychiatric nurse. 

(b) The services of a qualified mental health 
professional shall be available on a 24-hour basis. 

(c) Physician coverage shall be a\ailable on a 
24-hour basis. 

(d) On-caU staff shall be readily a\'ailable by 
telephone or page. 

Statutory Authority G.S. l4S(d)(19). 

.3004 ADMISSION .ASSESSMENTS 

(a) A physical examination and social histor>' 
shall be completed for each client within 30 days 
prior to admission or upon admission. Addi- 
tional assessments shall be completed as indi- 
cated. 

(b) In the case of an emergency admission of 
a client, the admission assessment shall be com- 
pleted within three days following admission. 

Statutory Authority G.S. /4Sfd)(/9). 

CIIAPI ER 18 - MEN LAL IIEALHI: Ol HER 
PROGRAMS 

SLBCHAPTER 18F - PROGRAM SLPPORT 
SIANDARDS 

SECnON .0100 - LRAINING .\ND 
RE(;iS IR.VnON OE FORENSIC EVALLVIORS 

.0115 SCOPE 

(a) The purpose of Rules .0115 through .0122 
of tlus Section is to specif)' the requirements that 
shall be met to be retiistcred as a forensic i i creen 



NORTH CAROLINA REGISTER 



9H4 



PROPOSED RULES 



jftg oxaminor e\'aluator by the Di\ision of Mental 
Health, Montal i ' ^oliirdaticin ncvelopmental Dis- 
abilities and Substance Abuse Services, 
(b) The provisions of Rules .0115 through 
.0122 of this Section apply to any qualified men- 
tal health professional seeking registration as a 
forensic i . croening oxaminL ' r evaluator by the Di- 
vision. 

Staiuton- Authoritv G.S. 1 5 A- 1002: I43B-I47. 



(2) 

(3) 



be an employee of, or work under contract 
with, an area program; and 
have his rh«* name submitted as an appli- 
cant for the training - and registration 
program by the area director, 
(b) For e nrio Sor i icco The area program shall 
verify that the applicant meets the appropriate 
standards for a qualified mental health profes- 
sional that are referenced in Rule .0116 (4-^ [2} 
of this Section. 



.0116 nKlIMIIONS 

I'or the puri->oses of Rules .0115 through .0122 
of this Section the following tcmis shall have the 
meanings indicated: 

(1) "["orcnsic Screening I''xa!Tiination r\'alu- 
ation" means an examination ordered h\ the 
court (*f a- dolcMulant to determine if the de- 
fendant has the capacity to proceed to trial. 
Bf if a foron ' .io I'valuation i^ necc '.'. an t++ 
make -. uch » det e rmination, needs further 
treatment at_ aH inpatient facility- or further 
e\aluation at the Pre- Inal l:\aluation Cen- 
ter. 

f4| "Icren ' ie r'niluaticin" meaiT . rm- examina 
tion by r+ per ' ^m deemed a meilical exp e rt 
by (-ht^ court ft* det e rmin e rf » defendant hrt^ 
t+w- capucitv to proceed k* tnal. 

Q (44 ■■Qualified Mental Health Professional" 
means a qualified mentiii health professional 
who meets the appropnate qualifications 
outlined ft*f ■. uch profev i' ionalr . as referenced 
in 10 NCAC -t^A 4^Wdl J_SJ[ .0120(71) m the 
Standards for Area Programs (Division pu- 
blication APSM 35-1) :ivv\ defined in jj] 
NCAC HK .010,^(6S:) 'i icensure Rules tor 
Mental Health. Mental Relarel.itKMi. and 
Cither Dewiopinent.tl niNahililies and Sub- 
stance Abuse laeililies " (.M'S.M 411-2). 

(-H I oreii '' ic Sei' i ice '. " meiin "' t-kt* ii i ograin 
eiilth Seclu>n t-vf f+te 4t- 



Hftft- t4 t4+e Menli. 
virion rer . pon ' iiblo fof pro' . iding l e adership 
a«4 techiiic;il a '.'. i '. tanc e m- planning, devel 
oping, implementing. rtH4 coordinating t-4 
loren^ic '. eP i ice '' Wt di' i i^ion in !. titution ;. rt«4 



iuea program '' . 
(3) "Pre-lnal lAaluation Center' 



means 



forensic unit at_ Dorothea Dix I lospita! 



Suitiiion Aiit/uu-itv G.S. /5.-1-/002.- /4.>ll-/47. 



.01 17 Kl K.IHII.n N lOK 1 R AIMN(; 

(a) To be eli'gible for regp ' tralion training as a 
forensic I' Creening examiner e\aluator the appli- 
cant shall: 

( 1 ) be a qualified mental health professional; 
t*f rt licenced p -' ) chological a ''' jOciate; 



Statutory Authority G.S. /5A-I002: I43B-I47. 

.0118 TRAINING AND RFX.ISTR.VTION 

The apphcant shaU successfully complete f&»f 
houTL ' ei training covering procedure, tccliniques, 
and reporting that is pro\ided b\ Forensic S<?f- 
' l ice - j. the .Mental I lealth Section of the Division 
in order to be rcLnstered as a forensic e\aluator. 



Statutoiy Authority G.S. /5A-I002: I43B-J47. 

.0119 PERIOD OF REGISTRATION 

Registration H«y b^ ft*f » period »*f wf* k* Pa^ 
years. Fxpinition ef reuf ' tration ' : . f ' haU occur e» 
Jun e iirh shall continue to be \alid unless regis- 
tration is tenninated as specified in Rule .0121 
of this Section. 

Stalutor}- Authority G.S. / 5 A- J 002: 143B-I47. 

.0120 RE-REGISTRATION (REPE.\LED) 

Statutory Authority G.S. 15A-1002: I43B-I47. 

.0121 TERMINATION OF REGISTR.VTION 

.\ lorensic Screening Fxaminor E\aluator Reg- 
istration wiU be declared void when: 

( 1 ) the examiner e\aluator no longer desires to 
be registered and perttinn the duties required 
by an examiner: e\aluator: 

(2) the exanuner evaluator is no longer em- 
plo\ed by. or under contract with, an area 
program; or 

(3) the examiner c\alualor no longer meets the 
registration requirements. 



— Statutoiy Authority G.S. L\i-/002: I43B-I47. 

.0122 DL TIES OF REGIS lERED FORENSIC 
E\.VLL.\FOR 

{M \Micn ordered by the court, the examuier 
e\aluator shall conduct forensic evaluation or a 



screening examination of the iiUeg e d defendant 
and report to the court in accordance with G.S. 
15A-in()2 whether: 

(1) there is sufTicient question of mental or 
emotional disorder to pur"ue em- evaluation: 



y,s'.> 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



rec(>mmcnd inpatient evaluation or treat- 
ment; or 
(2) there is sufTicient information to indicuto 
recommend that the all e g e d defendant does 
have capacity to proceed and further evalu- 
ation is not indicated. 
(4*+ A for e n -i ic i . crooning o?iaminor FH#r fte4- 
perform forL ' nr . io L ' saluution ji unkv . ri he > iho k ake 
deomed a m e dical e xp e rt hf t^Ke court. 

Slatulory Aulhority G.S. 1 5 A- 1 002; 1 43 B- 1 47. 

SLBCII APTER ISM - RKQIIKED SKRVICES 

SECTION .1300 - FORENSIC SCREENING AND 

EVALL ATION SERVICES FOR INDIVIDUALS 

OF ALL DISABILrrV GROUPS 

.1303 FORENSIC SCREENING AND 
EV ALU All ON 

Forensic screening and c\aluation to assess ca- 
pacity to i. tand proceed to tnal shall be pro\ided 
by L'xaminor ' . i cvaluators trained and registered in 
accordance with the pro\'isions of 10 NCAC ISf- 
.0115 througli .0122; TR.MNING AND REG- 
ISTRATION OF FORFNSIC SCR FF NINO 
FXAMIMRS FVAl lATORS (Division pub- 
lication APSR 100-3). 

Siatutmy Aulhority G.S. I5A-I002: 1438-147. 

TITLE 1 1 - DEPAR IMENT OF 
INSLR.WCE 

1\ oticc is hereby given in accordance with G.S. 
I SOB- 1 2 that the S.C. Department of Insurance 
intends to adopt rule cited as II NCAC 10 .1 105. 

1 he proposed effective dale of this action is May 
I, 1090. 

1 he public hearing will be conducted at 10:00 
a.m. on February 15, 1990 at Third Floor Hearing 
Room, Dobbs Building, 430 .V. Salisbuiy Street, 
Raleigh, X.C. 27611. 



c 



ommcnt Procedures: Written comments may 
be sent to Pete .Mtirdza, P.O. Box 263S7. Raleigh, 
N.C. 27611. Oral presentations may be made at 
the public hearing. Anyone having questions 
should call Pete ).liirdza at (919) 733-32S4 or 
Linda Slott at (919) 733-4700. 

CHAPTER 10 - FIRE .VND CASU.VLTY 
DIMSION 

SECTION .1 100 - RA IE FILIN(;S 



.1 105 OTHER R.VEE BUREAU LINES 

'i'he inJbrmation required by N.C. G.S. 
58- 124.20(h) shall be presented as follows: 
(NOTlv: If the data required by this Regulation 
are not being collected or reported, or are not 
readily available to insurers prior to April 1, 

1990, the insurers shall commence collecting or 
reporting such data beginning on January I, 

1991. If certain data are not regularly collected 
through the statistical plan, a special call for that 
data to companies whose aggregate written pre- 
mium is at least three-fourths of the total written 
premium of the coverages affected by the tiling 
may be substituted. Thereafter, such required 
data as have accrued shall be included in each 
tiling until cnougli data are available to satisfy 
fully this Regulation. If in addition to the full 
years of data specitied in any of the below re- 
quests, more recent data of less than a full year 
are available, that data shall also be pro\ided. If 
updates to the information requested below be- 
come available after a filing is made but before a 
decision is reached on it, they should also be 
provided.) 

(1) North Carolina premium, loss and loss 
adjustment e.\perience: 

(a) Include all available premium, loss, and 
loss adjustment expense, and exposure 
data from all companies writing a cover- 
age affected by the tiling. If the experience 
of any company that writes more than 
two percent of the North Carolina written 
premium of the coverage afTected by the 
filing has been excluded from any rate 
level, trend, loss de\elopmcnt, relativity, 
or investment income calculations for that 
co\erage, identify the company and its 
market share and provide an explanation 
for its exclusion. Also estimate the ag- 
gregate market share of other companies 
whose experience is excluded from such 
calculations. 

(b) Include all available expense data from all 
companies writing a co\'erage affected by 
the filing. If the experience of any of the 
60 largest countiyw ide writers of the cov- 
erages affected by the filing (excluding 
companies not writing in North Carolina) 
is excluded from any expense level calcu- 
lation, identify the company and its mar- 
ket share and provide an explanation for 
its exclusion. Also estimate the aggregate 
market share of other companies whose 
experience is excluded from such calcu- 
lations. 

(c) In tilings producing an overall rate le\el 
change for famiowners policies, use only 
the experience from coverages under the 



NORTH CAROLINA REG ESTER 



986 



PROPOSED RULES 



jurisdiction of the North (Carolina Rata 
Bureau when calculating that change. 
Indicate if and how non-Iiureau data has 
been segregated and if and how such data 
has affected any aspect of the filing (e.g., 
trend, expense provisions, etc.). 

(d) Clearly describe all adjustments to premi- 
ums, losses, loss adjustment expense, and 
exposures included in the filing. Show the 
unadjusted amounts to wliich adjustments 
were made, identify the specific adjust- 
ments, pro\ide details on the derivation 
and application of the adjustment factors, 
and describe all intermediate calculations. 

(e) I'or each coverage for which premium at 
present rates is calculated, indicate how 
such calculations were undertaken, supply 
supporting documentation for a sample 
of the calculations, and justify aU aggre- 
gate factors used. 

(f) In filings producing an overall rate level 
change for either homeowners or far- 
mowners policies, provide composite loss 
and premium information from each of 
the latest two Annual Statements for the 
lift) largest writers (based on North Ca- 
rolina written premium) of the co\'erages 
affected by the filing including the follow- 
ing: 

(i) Lnderwritint; and Investment Exhibit, 
Fart 2; 

(ii) L'nderwritinu and Investment Exhibit, 
Part .^A; 

(iii) North Carolina Page 14. 

For homeowners fiUngs, provide the in- 
formation on line 4; for farmowners fil- 
ings, the information on line 3. 

(g) Provide the latest written and earned pre- 
miums and market shares for the ten 
largest writers (based on North Carolina 
written premiimi) of the coverages af- 
fected by the fdmg. 

(h) Provide to the extent possible the follow- 
mg information on companies deviating 
from Bureau rates, by coverage, for each 
of the latest five years: 

(i) A list of all deviating companies: 

(ii) The total amount of deviations in dol- 
lars: 

(iii) The average percentage deviation for 
all companies, 
(i) In filings alTecting either homeowners or 
farmowners policies, provide the following 
information on dividends on pohcics af- 
fected b\ the filing: 

(i) .\ list of all companies issuing dividends; 

(ii) I he total amount of dividends in dol- 
lars; 



(iii) The average percentage dividend for aU 
companies, 
(j) In filings producing an overall rate level 
change, provide the following informa- 
tion, by coverage, for each year of loss 
experience used in calculating that change: 

(i) Paid losses and number of paid claims; 

(ii) Case basis reserves and number of out- 
standing claims; 

(iii) Applied loss development factor; 

(iv) Eoss adjustment expense factor; 

(v) Applied trend factor; 

(vi) 'I'rcnded incurred losses and EAE. 
(k) If data from monolinc coverages is used 
in the determination of package rate levels 
or vice versa, provided to the extent pos- 
sible the following information: 

(i) A clear description of the differences 
between the types of data; 

(ii) A description of which causes of loss 
are included or excluded; 

(iii) Infonnation on whether both types of 
experience are for the same companies; 

(iv) Comparable loss data for all years in- 
cluded in the filmg, rf available. (For ex- 
ample, if monoline experience before a 
certain date supplements package experi- 
ence after that date, also include the mo- 
noline experience after that date.) 
(!) Whenever North Carolina losses arc sepa- 
rated into excess (catastrophe) and non- 
excess (noncatastrophe) losses, provide a 
clear description and justification of the 
standard used to separate such losses. In 
determining an excess (catastrophe) load- 
ing, include as many years of data as pos- 
sible. If the number of years included 
differs from the number available, provide 
an explanation. Also provide an expla- 
nation if the data from which the excess 
loading is derived differs from that on 
which the rate level change is based, 
(m) In filings producing an overall rate level 
change, provide loss data by cause of loss 
in as much statistical detail as is available 
for each year used in calculating that 
change and describe any adjustment pro- 
cedures or factors applied to the separated 
data. 
(2) C^'redibility factor development and appli- 
cation. Provide all information related to 

the derivation of credibility factors contained 

in the filing including the following: 

(a) A descnption of all data rev iewed and all 
worksheets used; 

(b) A complete description of the methodol- 
0iz\ used to derive the factors; 



9,V7 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(c) A description of alternative methodologies 
used or considered for use in the last three 
years; 

(d) A description of the criteria used to select 
a methodology; 

(e) Specific details on the application of these 
criteria in the selection of a methodology 
for the filing; 

(f) Details on the application of the method- 
ology to the filing. 

(3) Loss development factor development and 
application. In filings producing an ovcraU 
rate level change for cither homeowners or 
farmowners policies, provide the following: 

(a) All information related to the derivation 
of the loss development factors contained 
in the filing including the following: 

(i) A description of all data reviewed and 
all worksheets used; 

(ii) A complete description of the method- 
ology used to derive the factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use in the last 
three years; 

(iv) A description of the cnteria used to se- 
lect a methodology; 

(v) Specific details on the application of 
these criteria in the selection of a meth- 
odology for the filing; 

(vi) Details on the application of the meth- 
odology to the filing. 

(b) Complete (including the upper left por- 
tion) total liinits paid loss development 
triangles for matching policies by coverage 
for the ten latest available accident years 
at aU available development points and 
also the loss development factors and 
five-year average factors derivable from 
these triangles. 

(c) The same infoimation in Subsection (b) 
for basic limits incurred losses. 

(d) The same information in Subsection (b) 
for the number of paid claims. 

(e) The same information in Subsection (b) 
for the number of outstanding claims. 

(f) If available, the information in Subsections 

(b), (c), (d), and (e) by cause of loss. 

(g) Statements regarding any reserve strength- 
ening during the last five years from each 
of the ten largest writers (based on North 
Carolina written premium) of the cover- 
ages affected by the filing. 

(4) Trending factor development and applica- 
tion; 

(a) Provide all information relating to the 
derivation of the loss trend factors con- 
tained m the filiniz includinu the followinc: 



(i) A description of all data reviewed and 
all worksheets used; 

(ii) A complete description of the method- 
ology used to derive the factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use in the last 
three years; 

(iv) A description of the criteria used to se- 
lect a methodolog)'; 

(v) Specific details on the application of 
these criteria in the selection of a meth- 
odology for the fding; 

(vi) Details on the application of the meth- 
odology to the fding. 

(b) If external indices are used for trending 
purposes, provide evidence that such in- 
dices are appropriate indicators of the se- 
lected cost changes. Include comparisons 
between the actual changes in loss costs 
and those estimated by the indices. 

(c) In fdings producing an overall rate change 
for either homeowners or farmowners 
policies, provide all available industn,' data 
on changes in loss frequency and severity, 
by cause of loss for each of the latest five 
years. Include both countr\A\ide and 
North Carolina data. 

(5) Changes in premium base and exposures: 
(a) Provide all information relating to the 

derivation of premium trend factors con- 
tained in the filing including the following: 

(i) A description of all data reviewed and 
aU worksheets used; 

(ii) A complete description of the method- 
ology used to derive the factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use in the last 
three years; 

(iv) A descnption of the criteria used to se- 
lect a methodology; 

(v) Specific details on the application of 
these criteria in the selection of a meth- 
odology for the tiling; 

(vi) Details on the application of the meth- 
odology to the filing, 
(bj In fdings producing an overall rate level 
change for either homeowners or far- 
mowners policies, provide the exposure 
distribution by policy term for each of the 
latest five years and estimate any changes 
to those distributions expected during the 
effective period of the proposed rates. 

(6) Limiting factor development and applica- 
tion. Provide infonnation on the following 
items: 

(a) Limitations on the losses included in the 
statistical plans used in the filing; 



NORTH CAROLINA REGLSTER 



9<SS 



PROPOSED RULES 



(b) I imitations on the extent of the rate level 
change by co\erage; 

(c) Ijmitations on the extent of territorial rate 
changes; 

(d) Any other limitations. 

(7) Expenses: 

(a) Provide all infomiation relating to the 
deri\ation of expense provisions con- 
tained in the filing including the following: 

(i) A dcscnption of all data re\iewed and 
all wcirksheets used; 

(ii) A complete description of the method- 
ology used to derive the factors; 

(iii) A description of altemati\e methodol- 
ogies used or considered for use in the last 
three \cars; 

(iv) A description of the criteria used to se- 
lect a methodology; 

(v) Specific details on the application of 
these criteria in the selection of a mcth- 
odolog\' for the filing; 

(\i) [Retails on the application of the meth- 
odology to the filing. 

(b) In filings producing an overall rate level 
change for either homeowners or far- 
mowners policies, pro\'ide earned pre- 
mium and unallocated loss adjustment 
expenses by co\erage for each of the latest 
fi\'e \'ears. 

(c) In filings producing an o\erall rate le\'el 
change for either homeowners or far- 
mowners policies, pro\ide statements re- 
garding any expense cutting acti\ities 
undertaken in the last five years by each 
of ten largest writers (based on North 
Carolina written premium) of the ctncr- 
ages affected by the filing. 

(8) The percent rate change. Proside the 
statewide rate change by co\erage and by 
deductible. 

(9) Proposed rates. Pro\ide the proposed av- 
erage rates for each co\erage, co\erage 
amount, form, and group. (In filings in- 
\'ol\'ing a large number of possible rates, in- 
fonnation on rating factors and their 
application may be substituted for the actual 
rates.) 

(10) In\estment earnings. In filings producing 
an o\crall rate le\el change for either home- 
owners or farmowners policies, infomiation 
on anticipated in\cstmcnt income is neces- 
sary to establish the pro\isions for under- 
writing profit and contingencies in the rates, 
(a) Calculate or estimate the amount of in- 
vestment income earned on loss, loss ex- 
pense, and unearned premium resenes as 
a percentage of earned premium, by cov- 
craize, for each of the two most recent 



Ncars, for the current year, and for all 
years during the effective period of the 
rates, Pro\ide the details of such calcu- 
lations including the amount of the com- 
posite reserves of each type at the 
beginning and at the end of each of the 
specified years, 
(b) To c\aluate recent insurer profitability, 
pro\ide composite uifonnation from each 
of the latest two Annual Statements for 
the 50 largest writers (based on North 
Carolina written premium) of the cover- 
ages affected by the filing including the 
following: 

(i) Page 2 (.Assets); 

(ii) Page 3 (Liabilities, Surjilus and Other 
Funds); 

(iii) Page 4 (Underwriting and Investment 
I-xhibit); 

(iv) Insurance Expense Exliibit, Part II. the 
columns that are affected h\ the filing, 

(11) Identification and Certification of Statis- 
tical Plans: 

(a) Identify all statistical plans used or con- 
sulted in preparing the filing and describe 
the data compiled by each plan, 

(b) Proside a certification that there is no e\- 
idence that the data collected in accord- 
ance with such statistical plans and used 
in the filing are not tixie and accurate rep- 
resentations of each company's experience 
to the best of that company's knowledge. 

(12) Investment Earnings on Capit;d and Sur- 
plus, In filings producing an overall rate 
le\el change for either homeowners or far- 
mowners policies, calculate the resulting 
rates of return on et]uity capital and on total 
assets produced h\ the selected underw riting 
profit and contingencies loadings. Show the 
derivation of all factors used in these calcu- 
lations and justify the fairness and reason- 
ableness of these rates of return. 

(13) Ee\el of Capital Surjilus Needed. In fil- 
ings producing an o\'crall rate le\el change, 
include infoimation on the needed lc\el of 
capital suiplus including the following: 

(a) Aggregate premium to surplus ratios for 
each of the latest three calendar \cars for 
all w riters of the cowrages aftcctcd b\' the 
filing. 

(b) Istimates of comparable ratios tor the ef- 
fective period of the rates. 

(14) Other Information: 

(a) Pro\ide all information related to the der- 
i\ation of the profit and contingency 
loadings contained in the tiling including 
the foUowinu: 



9.V9 



SORTH CAROLE\A REGISTER 



PROPOSED RULES 



(b) 



(i) A description of all data reviewed and 
all worksheets used; 

(ii) A complete description of the method- 
ology' used to derive the factors; 

(iii) A description of alternative methodol- 
ogies used or considered for use in the last 
three years; 

(iv) A description of the criteria used to se- 
lect a methodology: 

(v) Specific details on the application of 
these criteria in the selection of a meth- 
odology for the filing; 

(vi) Details on the apphcation of the meth- 
odology to the filing. 
In filings producing an oserall rate level 
change for either homeowners or far- 
mowners policies, pro\ide agendas and 
minutes of meetings of the North Caro- 
lina Rate Bureau affecting the filing and a 
list of all attendees at these meetings, their 
titles, and their affiliations. 
In filings producing an o%eraLl rate le\el 
change for either homeowners or far- 
mowners policies, describe all payments 
to any consultants (including lawyers, ac- 
tuaries, and economists) related to the 
current and pre\ious filing of the same 
type. If payments are not specifically 
identified as relating to particular filings, 
estimate them. 



Statuloij Authority G.S. 58-9; 5S-I24.20(h). 
TITLE 12 - DKPARTMENT OF JISTICE 



(c) 



I\oticc is hereby given in accordance with G.S. 
I50B-I2 that the North Carohna Private Protec- 
tive Sefyiccs Board intends to amend mlefsj cited 
as 12 \CAC 7D .0202. .0702, .0S02. 

1 he proposed effective date of this action is Jidv 
I. 1990. 

1 he public hearing will be conducted at 12:00 
noon on Fcbnjaty 16, J 990 at Duke Power Center, 
500 South Church Street, Charlotte, N.C. 28202. 

C_ ominent Procedures.' All written comments 
must be fdcd with the .Administrator 10 days prior 
to the meeting, .-til persons wishing to attend the 
meeting to make comments must contact the .Ad- 
ministrator 10 days prior to the meeting in order 
to be placed on the agenda. 



CIIAI'TEK 7 



l'KI\ ATE PR01ECI1VE 
SERVICES 



SLBCHAFTER 7D - PRIV.AIE (PROTECTIVE 
SERVICES BOARD 

SECTION .0200 - LICENSES: TRAINEE 
PERMIIS 

.0202 FEES FOR LICENSES AND TRAINEE 
PERMITS 

(a) Application, license and trainee permit fees 
are as follows: 

(1) one hundred and fifty dollars ($150.00) 
non-refundable application fee; 

(2) »m hundred a«4 fifty dollars (t 150. 00) two 

hundred dollars (S2fl0.00) annual fee for a 
new or renewal bcense; 

(3) »«# hundred i*«4 fifty dollurr . (tl50.00) two 

hundred dollars (S21)0.()0) annual trainee 
permit fee; 

(4) fifty dollars ($50.00) new or renewal fee for 
each license in addition to the basic h- 
cense: 

(5) twenty five dollars ($25.00) duplicate li- 
cense fee: 

(6) one hundred dollars ($100.00) late renewal 
fee in addition to the renewal fee: 

(7) one hundred dollars ($100.00) temporar\- 
license fee; and 

(8) fifty dollars ($50.00) branch office license 
fee. 

(b) Lees shall be paid in the form of a check 
or money order made payable to the I'ri\ate 
Protective Services Board. 

Statutory Authority G.S. 74C-9. 

SECTION .0700 - SECl Rl IV GL ARD 
REGIS IRAIION (LN ARMED) 

.0702 FEES FOR LNARMED SECLRITV 
GLARD REGISTRATION 

(a) Reaistration fees are as follows: 

(1) k»ft" dollcirL . ($1(1. OOl twenty dollars ($20.00) 

non-refundable initial reeistration lee; 

(2) k4+ dollars ($10.00) twenty dollars ($20.0(J) 

annual renewal, or reissue lee: and 

(3) f . ovon dollars m4 fifty eefrt^ ($7.50) ten 
dollars ($10.00) transfer fee. 

(b) Fees shall be paid in the form of a check 
or money order made payable to the Private 
Protective Services Board. 

Statutoiy Authority G.S. 74C-9. 

SECTION .0800 - SECLRITV OFFICER 
RFGISTRAIION (ARMED) 

.0802 FEES FOR ARMED SFCl RIT^ GLARD 
FIREARM REGISTRATION PERMIT 

(a) Registration fees arc as follows: 



NORTH CAROLINA REGISTER 



990 



PROPOSED RULES 



(1) c . o' i ontL'L ' n dolliirr i aft4 fifty L'ontij (f. 17.50) 

thirty dollars ($30.00) non-refundable ini- 
tial registration fee; and 

(2) SL'SLMiti'L ' n dollarr . afl4 fiftv c e nt ' i ($17.50) 

thirty dollars ($30.00) annual renewal, or 

reissue fee. 
(b) Fees shall be paid in the form of a check 
or money order made payable to the Pri\ate 
Protective Services Board. 

Staiiitoty Authority G.S. 74C-9. 

•k'k'k'k'k-k-k'k-k-k-k-k-k^-k-k-k-k 



No 



oticc is hereby given in accordance with G.S. 
150B-I2 that the North Carolina Alarm Systems 
Licensing Board intends to amend ride(s) cited 
as 12 .\CAC 11 .0202. .0301 and adopt 'nde(s) 
cited as 12 SCAC II .0207. .0401 - .0403. 



Th 



he proposed effecti\e date of this action is June 
I. 1990. 

1 he public hearing will be conducted at 12:00 
noon on March 13, 1990 at McKimmon Center. 
Western Boulevard and Gorman Street. Raleigh, 
A.C. 



Co 



ommcnt Procedures: .ill written co/nmcnts 
must be filed with the .Administrator by 5:00 p.m. 
10 days prior to the hearing. .All written requests 
to be placed on the agenda must be filled with the 
Administrator by 5:00 p.m. 10 days prior to the 
hearing. 

CHAPTER 1 1 - N.C. .\L ARM S'i STEMS 
LICENSING HOARD 

SECTION .0200 - I'RON ISIONS FOR 
LICENSEES 

.0202 EXPERIENCE REQLIREMENTS LOR 
IK ENSE 

(a) Applicants for an alami system license must 
meet the following minimum requirements which 
are additional to those specified in G.S. Chapter 
74D: 

(1) Establish to the Board's satisfaction two 
year's experience within the past five \ears 
in an alarm sNstems business as defined in 
G.S. 74D-2(a); alarm systems installation 
and service or; 

(2) Successfully pass an oral or wntten exam- 
ination deemed by the Board to measure 
an indi\'iduars knowledge and compe- 
tence in the alarm svstcms business; and 



(3) Successfully complete and maintain either 
the SP-LV, limited, intermediate or un- 
limited examination as administered by 
the North Carolina Board of Examiners 
of Electrical Contractors, 
(b) Applicants engaged exclusively in monitor- 
ing or responding to alarms may be issued a 
limited license which authorizes the performance 
of monitoring and responding functions only. 
Applicants for such a limited license shall not be 
required to meet the experience requirements of 
12 NCAC Chapter 11 .0202(a). 

Statutory Authority G.S. 74D-5(a)(2). 

.0207 LICENSE REQLIREMENTS 

\\\ licensees must inform the Board at aU times 
of their home address, business address, home 
telephone number and business telephone num- 
ber. 

Statutory Authority G.S. ''4D-5fa)fl). 

SECTION .0300 - PRO\ ISIONS FOR 
REGISTRANTS 

.0301 APPI.IC.VLION FOR REGISTR.VTION 

(a) Each employer or his designee shall submit 
and sign an application form for the registration 
of his employee on a form provided by the 
Board. I'his foim. when sent to the board, shall 
be accompanied by a set of classifiable finger- 
prints on a standard E.B.I, applicant card, two 
recent photographs of acceptable quality for 
identification one inch by one inch in size, state- 
ments of the results of a local criminal history 
records search by the city-county identification 
bureau or clerk of superior court in each county 
where the applicant has resided within the im- 
mediate preceding 24 4S months and the regis- 
tration fee required bv 12 NCWC C~hapter 11 
.0302. 

(b) The employer of an applicant who is cur- 
rently registered with another alarm business, 
shall complete an application form provided by 
the Board. 1 his form shall be accompanied by 
the applicant's multiple registration fee. 

(c) The employer of each applicant for regis- 
tration shall retain a copy of the applicant's ap- 
plication in the individual applicant's personnel 
file in the employer's office. Pro\ided all re- 
quired documents, properly completed. ha\'e 
been submitted to the Board upon or bclorc the 
be'-nnniniz of emplo\n"ient. the cm;^lo\er o^ each 
applicant tor reLTistralion ma\ izixe the applicant 
a cop\' of the application for the cmplo\ee to use 
until his retiistralion card is recened. 



991 



NORTH C.AROLli\A REGLSTER 



PROPOSED RULES 



Statutory Authority G.S. 74D-S. 

SECTION .0400 - RECOVEKY FUND 

.0401 nEFlMllONS 

In addition to the definitions under Article 2 of 
Chapter 74D of the General Statutes of North 
Carolina, the following definitions shall apply 
through this Section: 

(1) "Board" means the Alarm Systems licens- 
ing Board. 

(2) "Fund" means the Recover)- Fund of the 
Alarm Systems Licensing Act. 

(3) "Aggrieved Party" means a person who has 
suffered a direct or monetan,' loss because 
of a licensee's acts. 

(4) "Licensee" means a person who, at the time 
of the act complained of was licensed by the 
Alarm Systems Licensing Board. 

(5) "Reimbursable Loss ' means: 

(a) only those losses of money or other pro- 
perty which meet all of the following tests: 

(i) The obligation was incurred on or after 
July 1, 19S3; 

(ii) The loss was caused by a licensee de- 
faulting on an obligation owed where such 
obligation was entered into by the licensee 
to perform alarm systems sen.ices; and 

(iii) The aggrieved party has exhausted all 
civil remedies against the licensee or his 
estate and has complied with these rules. 

(b) the following shall be excluded from 
"reimbursable losses": 

(i) Losses of spouses, children, parents, 
grandparents, sibhngs, partners, associates 
and employees of the licensee causing the 
losses; 

(ii) Losses covered h\ any bond, surety 
agreement, or insurance contract to the 
extent covered thereby; and 

(iii) Losses which have been otherwise re- 
cci\'ed from or paid by or on behalf of the 
licensee who defaulted on an obligation. 

Statutory Authority G.S. 74D-30: 74D-3I. 



(4) The date or period of time during uhich the 
alleged loss was incurred; 

(5) A general statement of facts relati\e to the 
application; 

(6) Verification by the aggrieved party; 

(7) All supporting documents, including, but 
not limited to: 

(a) Copies of all contracts, invoices, returned 
checks, etc.; 

(b) Copies of all court proceedings against the 
licensee; and 

(c) Copies of all documents showing any re- 
imbursement or receipt of funds in pay- 
ment of any portion of the loss. 

Statutoiy Authority G.S. 74D-3I . 

.0403 PROCESSING APPLICATIONS 

(a) The Board shall cause each application to 
be sent to the administrator for investigation and 
report. A copy of the application shall be served 
upon or sent by registered mail to the last known 
address of the licensee who it is claimed defaulted 
on an obligation. 

(b) The Administrator shall conduct such in- 
\'estigation in such manner as he deems necessaPv' 
and desirable in order to determine whether the 
application is for a reimbursable loss and in order 
to guide and advise the Board in determining the 
extent, if any. for which the application should 
be paid from the fund. 

(c) A report from the .Xdministrator shall be 
submitted to the Chainnan of the Board within 
a reasonable time. 

(d) The Board shall hold a hearing on every 
application filed by an aggrieved party. The 
hearmg shall be held before the Board and shall 
follow the guidelines set out in Chapter 15(IB of 
the General Statutes of North Carolina. 

Statutoiy Authority G.S. 74D-3I . 

TITLE I5A - DEPARTMFNT OF 

ENMRONMFNT. HFALIH. AND 

NAILRAL RFSOFRCKS 



.0402 PEiniON FOR HEARING/ 
APPl.lC.VnON I OR RELIEF 

The Board shall prepare a Form of Petition for 
1 tearing and .Application for Relief w hich shall 
require the following minimum information: 

( 1 ) 7 he name and address of the aggric\'ed 
party; 

(2) The name and address of the licensee who 
defaulted on an obligation; 

(3j Fhe amount of the alleged loss for which 
application is made; 



lyoticc is hereby given in accordance with G.S. 
I50B-I2 that the Emironmcntal .Management 
Commission intends to amend ride(s) cited as 
ISA \'CAC 2B .0317. 

1 he proposed effective date of this action is .hdv 
I. 1990. 

1 he puhhc hearing will be conducted at 7:00 
p.m. on I'ebruaiT 15, 1990 at Courtroom. Sheriffs 



i\ORTH CAROLINA REGLSTER 



992 



PROPOSED RULES 



Office, I Queen I'lizabelh Avenue. Manteo. \orth 
Carolina. 



niLK 21 



OCCIPATIONAL LICENSING 
HOARDS 



Co 



omment Procedures: All persons interested in 
this matter are imited to attend. Comments, 
statements, data, and other information may be 
submitted in writing prior to. during, or within 
thirty (30) days after the hearing or may be pre- 
sented orally at the hearing. Oral statements may 
be limited at the discretion of the hearing officer. 
Submittal of written copies of oral statements is 
encouraged. For more information contact Su- 
zanne H. Keen, Division of Ernironmcntal Man- 
agement, P.O. Box 2'^6S', Raleigh, SC 27611. 
{919) 733-50S3. 

CH AITFK 2 - FN\IRONMK> TAL 
MANAGEMENT 

SLHCIIArnER 2I{ - SI RFACE WATER 
STANDARDS: MONHORING 

SECTION .0300 - ASSKJNMEN I OF STREAM! 
CEASSM ICAFIONS 

.0317 I'ASQLOTANK RI\ER BASIN 

(c) The Pasquotank River Basin Schedule of 
Classifications and Water Quality Standards was 
amended effccti\c: 

(1) March 1, 1977; 

(2) Mav 18, 1977; 

(3) December 13, 1979; 

(4) Januan- 1, 1985: 

(5) l-ebruar\- 1, 1986; 

(6) Januar>' 1, 1990; 

(7) July 1, 1990. 
(e) The Schedule of Classifications and Water 

OiialitN' Standards for the Pasquotank Ri\er Ba- 
sin was amended ctfecti\c .lulv _L 1990 as follows: 
(1) Cro:itan Sound [Index No. 3l)-2n-( 1 )| from 
a point o\_ land on the soulheni side of 
nunith of Peter \l:ishoes ("reek on Dare 
Count\- m;uniand tbllowinsz a line east- 



No 



at ice is hereby gtven in accordance with G.S. 
J SOB- J 2 that the North Carolina Real Estate 
Commission intends to amend rule(s j cited as 21 
NCAC 5SA .0/06 - .0107, .0502; 'SSC .0101 - 
.0105, .0/07, .0203 - .0205, .02/4. .02/7 - .02 /S. 
.030/ - .0303. .0306 - .0307, .0309 - .03/0; and 
adopt nde(s) cited as 21 NCAC 5SC .0202, 
.0308, .0401 - .0407; 5SD .0/01 - .0/02. .0201 - 
.0209. .030/ - .0306, .040/ - .0409, .050/. 

I he proposed e/fective date of this action is .May 
/, /990. 

1 he public hearing will be conducted at 9:00 
a.m. on Eebnian' /5, /990 at North Raleigh Efil- 
ton, 34/5 Old 'iVake Eorest Rd.. Raleii;h. NC 
27609. 



Co 



^omment Procedures: Comments regarding the 
niles may be made orally or submitted in writing 
at the public hearing. Written comments not 
submitted at the /rearing may be delivered to the 
North Carolina Real Estate Commission. Post 
Office Bo.x /~/00, Raleigh, NC 2''619, so as to 
be received by the hearing date. 

CHAPTER 58 - REAL ESTATE COMMISSION 

SLBCIIAPTER 58A - REAL ESTATE BROKERS 
AND SALESMEN 

SECTION .0100 - GENERAL BR0KER.U;E 

.0106 DELI\ERV OF INSLRLMENTS 

(a) lixcept as provided in Paragraph (b) of this 
Rule, e\'erv' broker or salesman shall imme- 
diately, but in no event later than fi\e days from 
the date of execution, deliver to the parties ther- 
eto copies of any contract, offer, lease, or option 
affecting real property. 

(b) A broker or salesman v i ho ha^ Uw- e xpr e ■ • ■■ ' . 
' ■ srittL ' n authority t-t+ L ' liler H++++ Iju '^ l" . t+f ronlal 
a ' -irt ' i ' ment -. eH+ b e half t+f tt propL ' itv ov . nor '■ hall 

(21 Croat:in Sound [index No. 30-20-(1.5)| d e liv e r to t4w own e r >Mthui j^^ Oavt-'fevm 4^ Jrrtt> 



ward to Northwest Point on Ro:tnoke Is- 
land and then from Northwest Point 
lollow inii a line west to Reei.ls I'oiiU on 
Wne Count\' mainland was reci:issiticd 
from Class SC to Class SB. 



from Northwest Pcijnt on Ro:inoke island 
tollow in',: a line west to Reet.ls Point on 
n:ire Count\ nKiinland to William B 
I mste:id .Memonal ihidiie was reelassihed 
from Class SC to Class SA. 



Statutoiy Authority G.S. 143-2/4./: /43-2/5./: 
/43-2/5.3(aj(l). ' 



t»f exe'cution, copieo e^lewse* &f roiitul agivemont i : 
' ■ shon t4+e tL'nancv j-- k'tr^ than t^ 4i+v 



in:i\ be 

relieved of fns dut\ under P:irauraph (a) o[ this 

Rule to deliver copies of leases or rental airree- 

ments to the property owner, if the broker: 

( 1 ) obtains the express wnlten authont\ of the 

property owner to enter into and retain 

copies of leases or rental aLzreements on 

beh:ill ot the propeilN' o\\ ner: 



993 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(2) executes the lease or rental agreement on 
a pre-printed form, the material terms of 
which may not be changed by the broker 
without pnor approval by the property 
(Hvner except as may be required by law; 

(3) promptly provides a copy of the lease or 
rental agreement to the property owner 
upon reasonable request; and 

(4) delivers to the property cnvner within 45 
da\s following the date o[' execution of the 
lease or rental agreement, an accounting 
which identifies the leased property and 
which sets torth the names of the tenants, 
the rental rates and rents collected. 



Statutoiy Authority G.S. 93A-3{c). 

.0107 IIWDLING .\M) .\CCOlMI\G OF 
FINDS 

(h) A broker may transfer earnest money de- 
posits in hi_s possession cc^llected in connection 
with a sales transaction to the closing attome\ 
or other settlement agent not more than ten days 
prior to the anticipated settlement date. .\ bro- 
ker or salesman shall not disburse pnor to clo '. ing 
settlement any earnest money in his possession 
for any i . ori . icor . pc ' iiormod m connoclion with a 
F««4- e'. tat e tnmi . action other purpose without the 
written consent of the parties. 

Statutory Authority G.S. 93A-3(c). 

SECTION .0500 - LICENSING 

.0502 CORPORATIONS 

(c) After filing a written application with the 
Commission and upon a showing that at least 
one executive officer of said corporation holds a 
current broker's license in good standing and will 
serve as principal broker of the corporation, the 
corporation will be licensed pro\ided it appears 
that the applicant corporation employs and is 
directed by personnel possessed of the requisite 
truthfulness, honesty and integrity, bcich princi 
f>i4 broker '. hall notify tk^ roinmi !'' ; . ion h+ vr«t- 
me t4 tmy chiinge m- kt^ i . tatii! . a^ piincipal broker 
' ■ vithin k» day - j follo' i ' i ing t-l+e chungo. 

(e) The principal broker of a corporation shall 
assume responsibility for: 

( 1 ) designating and assuring that there is at all 
limes a br(>ker-in-charge for each otlice 
and branch olfice o[ the corporation at 
which real estate brokerage activities arc 
conducted; 

(2) renewing the real estate broker license of 
the corporation: 

(3) the proper displa\- of the real estate license 
certificate of the corporation a[ the prin- 



cipal office of the corporatic^n at which 
real estate brokerage acti\ities are con- 
ducted and a photocopy of such license 
at each branch office thereof; 
(4) notif\'ing the ('ommission of any change 
of business address or trade name of the 
corporation and the registration ot any 
assumed business name adopted by the 
corporation for its use; and 
notifying the Commission in writing of 



[51 



an\' change of lus status as principal bro- 
ker within ten davs following the change. 



Statutory Authority G.S. 93A-3(c): 93A-4 (a), 
(b), (d). 

SLBCM.VPTER 58C - REAL ESTATE AND 
AI'PR.MSAL EDUCATION 

SECTION .0100 - SCHOOLS 

.0101 .VPPLIC.VHILH V: REQL IREMENT 
FOR .\PPRON AL 

Tliis Section applies to aU schools, except pri- 
vate real estate schools, offering either real estate 
pre-LiecnsLng courses prescribed by G.S. '53A-4(a) 
or appraisal pre-licensing or pre-certification 
courses prescribed by G.S. Q3A-73(a). hi order 
for courses conducted by a school to be recog- 
nized as real estate pre-lieensing courses or ap- 
praisal pre-licensing or pre-certification courses 
by the Commission, the school must obtain 
approval by the Commission prior to the com- 
mencement of any such courses. 

Statutory Authority G.S. 93A-4(a),(d). 

.0102 APPLICATION FOR APPRO\ .\L 

Schools seeking approval to conduct real estate 
pre-licensing courses or appraisal pre-licensing 
or pre-certification courses must make written 
application to the Commission upon a form 
prescribed by 

the Commission. Schools shall submit a sepa- 
rate application for each separate department 
under wliich courses are to be conducted. 

Statutoiy Authority G.S. 93A-4{a).id). 

.0103 CRITERIA FOR APPRO\ .\L 

(a) /Vfter due investigation and consideration, 
approval shall be granted to a school when it is 
shown to the satisfaction of the Commission 
that: 

The school has submitted all information 
required by the Commission; 
The school is a North Carolina post-sec- 
ondar\ edueati^'^nal institution licensed or 
approved by the Stale Board of Commu- 



(1) 
(2) 



NORTH CAROLINA REGISTER 



994 



PROPOSED RULES 



nity Colleges or the Board of Governors 
of the lJni\ersity of North Carolina or a 
North Carolina pn\ate business or trade 
school licensed under Cj.S. 1 15l)-571; 
and 
(3) 1 he courses to be conducted compK with 
the standards described in Section . 1 1 00 
Section .0300 of this Subchapter. 
(b| A North Carolina college or university 
which grants a baccalaureate or higher degree 
with a major or minor in the field of real estate 
or a closely related field may request that appro- 
priate real estate and related courses in its curric- 
ulum be approved by the Commission as 
equi\-alent to the real estate pre-licensing educa- 
tion program prescribed by G.S. 93A-4(a). /\nv 
such institution ma\' also request that real estate 
appraisal and rclalcd courses m \V>_ cumculum be 
approNcil b\ the Commission as cc|ui\ alcnt to 
the appraiser pre-llcensln^ or pre-certifKation 
education program prescribed b\ (j.S. ^3.\-73(a). 
the Commission may, in its discretion, grant 
such approval and may exempt such school from 
compliance with the course standards set forth in 
SL'ction T++Oa Section .0300 of this Subchapter. 

Statutory Authority G.S. 03.4-4 1 a /.( d). 

.0104 .SCOPF: OrKMION AM) RKNKWAL 
OF AIM'RO\ AL 

(a) ApproN'al extends only to the courses and 
locations reported in the application for school 
approval. 

(b) Commission appro\'al of schools shall ter- 
minate on the second December 3 1 follow ing the 
effective date of approval. 

(c) Schools must renew their approval to con- 
duct real estate pre-licensing courses (2r appraisal 
pre-licensing or pre-certification courses by satis- 
tying the criteria for original approval described 
in RtOr' r+iHU Rule .0103'" of this Section. In or- 
der to assure continuous approval, renewal ap- 
plications should be filed with the Commission 
biennially according to a schedule established by 
the [:.xecuti\e Director. 

Statuto?y .Authority G.S. Q3.-\-4( a) .( d). 

.0105 WFIIIDRAWAL OR DKNLVL OF 
.APPROVAL 

fcH I he Commission may deny or \\ithdraw 
approN'al of an\' school upon finding that such 
school has: 

(1) refused or failed to compl_\ with an\ of the 
provisions of Soctionr . .1000 t+f .1 100 Sec- 
tions .0100 or .0300 of this Subchapter; 

(2) obtained or used, or attempted to obtain 
or use, in an\ manner or form. North Ca- 



rolina real estate or appraiser licensing or 
certification examination questions; or 
(3) compiled a '■ alor ' man »f brok e r licensing or 
certification examination performance re- 
cord tor any annual reporting period which 
is substantially below the performance re- 
cord of all first-time examination candidates, 
(t*) 1ft ali procuL'ding i i te- ' . vithdraw «*f deny rtp- 

proval, t+H» provi ^. icnfi ef Chapter 1 ,^0B ^f t4«» 

(ieneral Statut e s , ^hall t>e applicable. 

Statutory Authority G.S. 93A-4(aj,( d). 

.0107 USE OF FXAMINATION 
PKRFORNFKNCF DATA 

An approved school may utilize for advertising 
or promotional purposes licensing or certification 
examination pertormance data provided to the 
school b_\' the Commission, provided that any 
disclosure of such data by the school must be 
accurate and must: 

(1) be limited to the annual examination per- 
formance data for the particular school and 
for all examination candidates in the state; 

(2) include the type of examination, the time 
period covered, the number of first-time 
candidates examined, and either the number 
or percentage of first-time candidates passing 
the examination; »ft4 

(3) state that the disclosed data was provided 
by the Commission; and 

(4) (-i| be presented in a manner that is not 
misleading. 

Statutory .Authority G.S. 93A-4(a),(d). 

SECriON .0200 - I'RH AFF RFAL EST.\TE 
SCHOOLS 

.0202 ORI(;i\AL APPI IC.UION FEE 

The original license application fee shall be two 
hundred dollars (S>200.00) for each proposed 
school location and forty dollars ($40.00) for 
each real estate pre-licensing course and appraisal 
pre-licensing and pre-certitlcation course for 
which the applicant requests approval. The fee 
shall be paid by certified check, bank check or 
money order payable to the North Carolina Real 
Estate Commission and is nonrefundable. The 
school may offer appro\'ed courses at any li- 
censed school location as frequcnth' as is desired 
during the licensing period without paying addi- 
tional course fees. Requests for approval of ad- 
ditional courses which are submitted subsequent 
to filing an original license application shall be 
accompanied by the appropriate fee of forty dol- 
lars ($40.00) per course. 

Statutory .iuthoritv G.S. 93.1-33. 



995 



yORTH CAROLl!\A REGISTER 



PROPOSED RULES 



.0203 SCHOOL NAME 

The official name of any licensed private real 
estate school must contain the words "real 
estate" and other descriptive words which clearly 
identify the school as a real estate school and 
which distinguish the school from other licensed 
private real estate schools. If the school is to 
conduct appraisal pre-licensing or pre-certifica- 
tion courses and will not conduct real estate pre- 



(4) (4) be presented in a manner that is not 
misleading. 

(b) Schools shall not make or publish, by way 
of advertising or otherwise, any false or mislead- 
ing statement regarding employment opportu- 
nities which may be a\ailable as a result of 
successful completion of a course offered by that 
school or acquisition of a real estate b role or ©f 
Siilc 'i iman Ucense or an appraiser license or certif- 
icate. 

(c) Schools shall not use endorsements or rec- 
ommendations of any person or organization, by 
way of advertising or otherwise, unless such per- 
son or organization has consented in writing to 
the use of the endorsement or recommendation 
and is not compensated for such use. 

Statutory Authority G.S. 93A-4(a).(d): 93A-33. 

.0217 I ICF.NSE RENEWAL AND FEES 

(a) Private real estate school licenses expire on 
the next June 30 following the date of issuance. 
In order to assure continuous licensure, applica- 
tions for license renewal, accompanied by the 
prescribed renewal fee, should be filed with the 
Commission annually on or before June 1. In- 
complete renewal applications not completed bv 
Julv j_ shall be treated as onizinal license applica- 
tions. 

(b) The license renewal fee shall be one hun- 
dred dollars ($10(1.01)) for each previcnislv li^ 
censed school location and twent\' dollars 
(S20.00) for each real estate pre-licensing course 
and appraisal pre-licensine and pre-certification 
course for which the applicant requests continu- 
ini! approval. Ihe fee shall be paid b\ check 
pavahle to the North Carolina i^eal 1 'state 

Statutory: Authority G.S. 93A-4(a),(d); 93A-33. Commission and is nonrefundable. If the appli- 



licensing courses, then the school name must 
contain the word ''appraisal" in addition to the 
words "real estate". 1 he school name must be 
used in all school publications and advertising. 

Statutory Authority G.S. 93A-4(a).{d); 93A-33. 

.0204 COLRSES 

Schools shall comply with the provisions of 
Section .0300 of this Subchapter regarding «*r4 
C i tato pre-licensing and pre-certification courses. 

Statutory Authority G.S. 93A-4(a),(d); 93A-33. 

.0205 ADDITIONAL COLRSE OFFERINGS 

Schools may offer Fe*! or ' tatc courses in addition 
to those described in Section .0300 of this Sub- 
chapter provided that references to such courses 
are not made or published in a manner which 
implies that such courses are sanctioned by the 
Commission. 1 lowever, if licensure as a pri\'ate 
business or trade school under G.S. 1 L'^D-571 is 
required m order for the school to offer such ad- 
ditional courses, then the school must obtain 
such license prior to olTering such additional 
courses. 



.0214 ADXKRIISING AND KECKUriMENT 
ACriMllES 

(a) A school may utilize for advertising or 
promotional purposes licensing or certification 
examination performance data pro\'ided to the 
school by the Commission, provided that any 
disclosure of such data by the school must be 
accurate and must: 

(1) be limited to the annual examination per- 
fonnance data for the particular school 
and for all examination candidates in the 
state: 

(2) include the t\pc of examination, the time 
period covered, the number of first-time 
candidates examined, and cither the num- 
ber or percentage of first-time candidates 
passing the examination; ttft4 

(3) state that the disclosed data was pro\ided 
bv the Commission: and 



cant requests approval of additional courses lor 
which approval was not granted in the pre\ious 
\ear. the fee for such additional courses is tort\- 
dollars ($40.00) per course. 

Statutory Authority G.S. 93A-4( a),( d); 93A-33. 

.0218 LICENSING EXAM 

CONFIDENllAI.H\: S( IIOOL 
PERFORM./LICENSING 

(a) Schools shall not obtain or use, or attempt 
to obtain or use, in any manner or form, North 
Carolina real estate or appraiser licensing or cer- 
tification examination questions. 

(b) Schools must maintain a satisfactor\' per- 
formance record on the real estate and appraiser 
licensing and certification examinations. /\ 
school peribmiance record that is substantially 
below the pcrfonnance record of all first-time 
examination candidates durinsi an\' annual re- 



NORTH CAROLINA REGISTER 



996 



PROPOSED RULES 



porting period shall be considered unsatisfacton' 
under this Rule. 

Statuunj Authority G.S. 93A-4(a).(d) ; 93A-33. 

SECnON .0300 - I'KK-I IC K.NSING AND 
PRE-CERTIFICATION COIRSES 

.0.^01 ri RI'OSE AND .\I'PI.IC.\BII,ITY 

This .Section establishes minimum standards for 
real estate pre-liccnsing courses prescribed by 
G.S. 93A-4(a) and appraisal pre-licensing and 
pre-certification courses prcscnhed bv (}.S. 
9.V\-73(a). lixcept where a school is appro\ed 
under 14^*4^ .l( l 0.1(b) Rule .nir)3(b) of this Sub- 
chapter, these course standards must be satisfied 
in order for a school to be appro\ed or licensed, 
as appropriate, to conduct real estate pre-licens- 
ing courses or appraisal pre-licensint; or pre-cer- 
tification courses. I xcept for the specihc 
exceptions stated in Rule .i)4().Mai of this Sub- 
chapter, these course standards are also applica- 
ble to appraisal tnide orjani/ation courses that 
are recoLini/.ed under Section .1)4(11) ot^' this Sub- 
chapter as equi\ alent to the appraisal pre-licens- 
inii and pre-ceilificatitin courses prescnbed in 
Rule .t).M)2(b) and (c) of this Section. The 
Commission will recognize real estate pre-licens- 
ing courses and appraisal pre-licensing and pre- 
certification courses, as well as eg ui\ alent 
a;^praisal trade ornani/ation courses, conducted 
m- t4-i+- ■■ lut e only it such courses comph with 
these standards. 

Statuton Aiahoritv G.S. 93A-4ia/.(dl; 93A-33; 
93A-75(a). 

.0302 I'ROCRAM STRLCTIRING 

(a) Real estate pre-licensing education programs 
must be structured as prescribed in G.S. 
93A-4(a). The salesman course must be a pre- 
requisite for enrollment in the ad\anced broker 
courses. 

(b) .Appraisal pre-licensing (residential ap- 
praiser) education iiroerams must consist of the 
follow ini: three co iuncs. each inM^h inn a mini- 
mum ot 3i) classroom hours: 



( 1 ) Introduction to Real 1 state .Appraisal: 

(2) \aluation Principles and Procedures: and 

(3) .\|">plied l\esiJential PropertN \'aluation. 

T hcse courses must be taken seqiientialK' m the 
order listed. 

(c) Appraisal pre-certihcation ( iieneral ap- 
praiscri education pro-jrams must consist of the 
tollowirii: three courses, each insohing a mini- 
mum lA M]_ classroom hours, in addition to the 
three residential appraiser courses prescribed in 
I'araLir.iph (b) ol thi_s Rule: 



(1) Introduction to Income PropertN' Ap- 
praisal: 

(2) Ad\anced Income Capitalization Proce- 
dures: and 

(3) .Applied Income f^ropertv \'aluation. 
These courses must be taken sequentialK m the 
order listed and the residential appraiser courses 
must be a prerequisite for these courses. 

Sialiilon' Authoritv G.S. 93A-4(a).idj; 93A'33; 
93A-y5{aj. 

.0303 COl RSE CONTENT 

(a) .VU courses shall consist of instruction in 
the subject areas and at the competency and in- 
structional le\'els prescribed in the Commission's 
course syllabi. 

(h) Courses may also include co\erage of ad- 
ditional related subject areas not prescribed by 
the Commission: however, any such course must 
pro\ide additional class time abo\e the minimum 
requirement of 30 classroom hours for the cov- 
erage of such additional subject areas. 

(c) Classroom time and instructional materials 
ma\' be utilized for instructional purposes onl\- 
and not for promoting the interests of or recruit- 
ing employees or members for an_\' particular real 
estate broker, real estate brokerage firm. »f real 
estate franchise, appraiser, appraisal firm or ap- 
praisal trade oreani/ation. 

Statutory Authority G.S. 93.-\-4{ aj,{ dj; 93A-33; 
93A-75(a,). 

.0306 TEXTBOOKS 

F.ach course must utilize a textbook or course 
materials which i^ are approved by the Com- 
mission as well as any additional instructional 
materials which may be prescribed by the 
Commission for such course. 

Statuton Authority G.S. 93A-4(aj,(dj; 93A-33: 
93A-75('aJ. 

.0307 REAI ESI AVE INSIRl CIORS 

(a) lixcept as indicated in Paragraph (b| of this 
Rule, all real estate pre-licensing courses must be 
taught by instructors who possess good moral 
character and either the minimum real estate ed- 
ucation and experience qualifications listed m this 
Rule for each course "or other qualifications that 
are tbund by the Commission to be equivalent 
to those listed. These qualification requirements 
must be met on a continuing basis. Tor a pre- 
viously approved instructor, experience in teach- 
ing a North Carolina real estate pre-licensing 
course may be substituted for an\' required expe- 
rience in real estate brokerage, real estate law 



997 



.\ORTH CAROLI.\A REGISTER 



PROPOSED RULES 



practice, or mortgage lending when a school is 
seeking continued approval of the instructor to 
teach such course. 

(1) Fundamentals of Real Estate; A current 
North Carolina salesman or broker license 
in good standing, 120 classroom hours of 
real estate education excluding company 
or franchise in-service sales training, and 
two years' full-time general real estate 
brokerage experience within the previous 
five years. 

(2) Real Estate Law: A License to practice law 
in North Carolina and either experience 
in closing at least ten real estate sales 
transactions within the prc\ious three 
years or completion of a real estate prac- 
tice course in law school. 

(3) Real Estate Finance: One year full-time 
experience within the previous three years 
as a mortgage loan officer specializing in 
first mortgage loans, or two years full- 
time experience within the previous three 
years as a general loan officer with an in- 
stitution which makes a substantial num- 
ber of first mortgage loans, or a current 
North Carolina broker license in good 
standing and a minimum of five years' 
full-time general real estate brokerage ex- 
perience witliin the previous se\'en years. 

(4) Real Estate Brokerage Operations: A 
current North Carolina broker license in 
good standing, 120 classroom hours of 
real estate education excluding company 
or franchise in-ser\'icc sales training, and 
three years' full-time general real estate 
brokerage experience within the previous 
five years including at least one year as 
broker-owner, designated broker-in- 
charge or managing broker of a multi-a- 
gent real estate firm or office. 

(b) Guest lecturers who do not possess the 
qualifications stated in Paragraph (a) of this Rule 
may be utilized to teach collectively up to one- 
half of any course, provided that no one indi\id- 
ual guest lecturer may teach more than one-third 
of any course, and pro\idcd further that each 
guest lecturer possesses expeiience directly related 
to the particular subject area he is teachmi;. 

Stalutorv Ainhohtv G.S. 93A-4{a).fd): 93,1-33; 
93 A -75 fa). 

.0308 .\PPR.MSAL INSTRLCTORS 

(a) Except as indicated in Paragraph (b) of this 
Rule, all appraisal pre-licensing and pre-certifica- 
tion courses must be taught by instructors who 
possess good moral character and cither the mi- 



nimum appraisal education and experience qual- 
ifications listed in this Rule or other 
qualifications that are found by the Commission 
to be equivalent to those listed. These quali- 
fication requirements must be met on a continu- 
ing basis. For a previously-approved instructor, 
experience in teaching appraisal courses may be 
substituted for any required appraisal experience 
when a school is seeking continued approval of 
the instructor. The minimum qualifications are 
as follows: 

(1) Pre-licensing (residential appraiser) 
courses: 90 classroom hours of real estate 
appraisal education and two years full- 
time experience as a residential real estate 
appraiser within the previous three years. 
After .July 1, 1991, instructors must also 
be state-licensed real estate appraisers. 

(2) Pre-certification (general appraiser) 
courses: 180 classroom hours of real estate 
appraisal education and five years' full- 
time experience as a general real estate 
appraiser within the previous seven years, 
with at least 50 percent of such experience 
being in income property appraising. /Vf- 
ter July 1, 1991, instructors must also be 
state-certified real estate appraisers. 

(b) Guest lecturers who do not possess the 
qualifications stated in Paragraph (a) of this Rule 
may be utilized to teach collectively up to one- 
third of any course, provided that each guest lec- 
turer possesses experience directly related to the 
particular subject area he is teaching. 

Slatutory Auihority G.S. 93.i-33: 93A-75(a). 

.O.M)9 CFRTIFICATION OF COURSE 
COMIM ETION 

I ic e n -.B applicuntr i Applicants for licensure or 
certification must pro\ide verification of satisfac- 
tory' course completion on an official certificate 
in a format prescribed by the Commission. 
Such certificates will not be accepted if they were 
issued to students prior to the last scheduled class 
meeting of a course. Certificates of course com- 
pletion submitted to the Commission must be 
on the official stationeiy of the school and must 
ha\e the original signature or signature stamp of 
the dean, director, department head or other of- 
ficial responsible for super\ising the conduct of 
the course. 

Statutoiy Aiitfwritv G.S. 93A-4{a),fd): 93.4-33: 
93A-y5(aj. 

.0.110 COl KSE RECORDS 

(a) Schools must retain on file for fi\e years 
copies of all giade and attendance records and 



NORTH CAROLINA REGISTER 



998 



PROPOSED RULES 



must make such records available to the Com- 
mission upon request. 

(b) Schools must retain on tile for two years a 
master copy of each final course examination, 
and such file copy shall indicate the answer key, 
th*» r . chnol namo, cour^ .w location, course title, 
course dates and name of instructor. Lxamma- 
tion file copies shall be made available to the 
Commission upon request. 

Slatiilorv Auihoritv G.S. 93A-4(a).(d): 93A-33; 
93A-75(a). 

SKCTION .0400 - AIM'RAIS VI. IR.VDE 
ORG AM/ MiON C Ol KSKS 

.0401 PURPOSE .\ND AIM'I.lC.Vmi.l lY 

This Section establishes procedures by wliich 
an appraisal trade organization may seek recog- 
nition of its appraisal courses as equivalent to the 
appraisal pre-licensing and pre-certification 
courses required by G.S. 93A-73(a) and specified 
in Rule .0302 of tl'us Subchapter. 

Statutory Authority G.S. 93.4-75ia) and (b). 

.0402 APPLICATION AND FEE 

(a) Appraisal trade organizations seeking re- 
cognition of their courses as equivalent to North 
Carolina appraisal pre-licensing and pre-certifi- 
cation courses must make written appUcation to 
the Commission on a form prescribed by the 
Commission. Application must be made by an 
authorized administrative official from the prin- 
cipal office of the appraisal trade organization. 
Applications will not be accepted from a chapter 
or other subsidiary of an appraisal trade organ- 
ization. 

(b) The original application fee ^halI be two 
hundred fifty dollars ($250.00) for each course 
which the Commission is being requested to 
evaluate and recognb.e. The fee shall be paid by 
certified check, bank check or money order pay- 
able to the North Carolina Real F.state Com- 
mission and is nonrefundable. An organization 
may offer recognized eciui\alent courses as fre- 
tiuently as is desired during the period for which 
recognition is granted without pa\ing additional 
course fees. 

Statutory Authority G.S. 93A-5iaj and (bj. 

.0403 CRHI.RIA 1 OR COl RSE 
RECOGNinON 

(a) Appraisal trade organization courses must 
be found b\' the Commission to be substantially 
equi\ alent to the appraisal pre-licensing and pre- 
certification courses prescribed in Rule .0302(b| 
and (ci of this Subchapter. Such courses must 



be conducted in accordance with the minimum 
course standards prescribed in Section .0300 of 
this Subchapter, provided that the following ex- 
ceptions to those standards shall apply: 

(1) Appraisal trade organization education 
programs may be structured differently 
from the program structure prescribed in 
Rule .0302(b) and (c) of this Subchapter; 
howe\er, the programs must provide for 
appropriate preret|uisites for advanced 
courses and each appraisal trade organ- 
ization course for which commission re- 
cognition is sought must consist of a 
minimum of 1 5 classroom hours. 

(2) Appraisal trade organization courses may 
be scheduled in a manner that pro\ ides for 
class meetings of up to seven classroom 
hours in any given day and 42 classroom 
hours in any given seven-day period; 
however, equivalent credit for courses 
scheduled for more than 30 classroom 
hours per seven-day period will be limited 
to 30 classroom hours per se%en-day pe- 
riod. 

(3) Instructor qualifications will generally not 
be apprtned by the Commission on an 
individual basis; howe\er, the appraisal 
trade organization must have and enforce 
written instructor qualification require- 
ments that are equivalent to those pre- 
scribed in Rule .0308 of this Subchapter. 

(4) Appraisal trade organizations are not sub- 
ject to the 90-day limit for allowing stu- 
dents to make up a missed course 
examination or to retake a failed course 
examination without repeating the course; 
howe\er, the appraisal trade organization 
must have an appropriate written policy 
regarding this matter. 

(b) The appraisal trade organization must ha\e 
and enforce written policies which require their 
courses to be conducted in classroom facilities 
that provide an appropriate learning eruiron- 
ment. 

(c) I he appraisal trade organization must ha\'c 
written policies with regard to course cancellation 
and the refund of tuition and other course fees. 
Such policies must be provided to prospective 
students prior to acceptance of any fees from 
such prospective students and the organization 
must enforce such ptilicies in a fair and reason- 
able manner. 

(d) Various combinations of appraisal trade 
organization courses may be recogmzed as 
equivalent to single North Carolina appraisal 
pre-licensing or pre-certification courses or to the 
North C?arolina appraisal pre-licensing (residen- 
tial appraiser) or appraisal pre-certification (gen- 



999 



\ORTH CAROLIi\A REGISTER 



PROPOSED RULES 



cral appraiser) education programs; however, 
equivalent credit will be granted only in incre- 
ments of 30 classroom hours. 

Statutory Authority G.S. 93A-75(a) and (b). 

.0404 CHANGES DURING THE RECOGMl ION 
PERIOD 

Appraisal trade organizations must obtain ad- 
vance approval from the Commission for any 
changes to be made in commission-rccogni/ed 
equivalent courses with regard to program struc- 
turing, course content, course completion stand- 
ards, textbooks or course materials, or instructor 
qualification requirements. Requests for ap- 
proval of such changes must be in writing. 

Stalutoij Authority G.S. 93A-75(a) and (b). 

.0405 AD\ ERIISING OF RECOGM HON 

AM) EXAMINAIION I'EREORMANCE 

(a) An organization that has obtained com- 
mission recognition of its courses under this 
Section may advertise that such courses are "re- 
cognized" for equivalent credit toward the re- 
quirements for initial North Carolina real estate 
appraiser licensure or certification. Such adver- 
tisement may not, however, state that such 
courses are "approved" North C'arolina appraisal 
pre-licensing or pre-certification courses. 

(b) An organization that has obtained com- 
mission recognition of its courses under this 
Section may utilize for adsertising or promo- 
tional purposes licensing or certification exam- 
ination performance data pro\ided to the 
organization by the Commission, pro\ided that 
any disclosure of such data by the organization 
must be accurate and must: 

(1) be limited to the annual examination per- 
formance data for the particular organiza- 
tion and for all examination candidates in 
the state; 

(2) include the t>pe of examination, the time 
period covered, the number of first-time 
candidates examined, and either the num- 
ber or percentage of first-time candidates 
passing the examination; 

(3) state that the disclosed data was provided 
by the Commission; and 

(4) be presented in a manner that is not mis- 
leading. 

Statutory Authority G.S. 93A-75(a) and (b). 

.0406 RENEW.VL OF COMMISSION 
RECOGNITION: FEE 

(a) Commission recognition of appraisal trade 
organization courses expires on the next .June 3(1 
folJowmg the date of issuance, except that ap- 



provals granted prior to .July 1, 1990 shall not 
expire until June 30, 1991. In order to assure 
continuous recognition of courses, applications 
for renewal of commission recognition, accom- 
panied by the prescribed renewal fee, should be 
filed with the Commission annually on or before 
June 1. Incomplete renewal applications which 
are not completed by July 1 shall be treated as 
original applications. 

(b) The annual fee for renewal of commission 
recognition shall be one hundred twenty-five 
dollars ($125.00) for each course for which re- 
newal of commission recognition is requested. 
The fee shall be paid by check payable to the 
North Carolina Real Fstate Commission and is 
nonrefundable. If the organization requests 
commission recognition of additional courses for 
which recognition was not granted in the previ- 
ous year, the fee for such additional courses is 
two hundred fifty dollars ($250.00) per course. 

Statutory Authority G.S. 93A-^5(ai and ib). 

.0407 WiniDRAVVAL OR DENIAL OF 
COMMISSION RECOGNITION 

The Commission may deny or withdraw recog- 
nition of any appraisal trade organization courses 
upon finding that: 

(1) the organization has made any false state- 
ments or presented an\ false informaticm in 
connection with an application for commis- 
sion recognition of its courses; 

(2) the organization has refused or failed to 
comply with any of the provisions of this 
Section; 

(3) the organization's courses do not comply 
with the course standards prescribed in Rule 
.0403 of this Section and Section .0300 of 
this Subchapter; 

(4) the organization has obtained or used, or 
attempted to obtain or use, in an\ manner 
or form. North Carolina appraiser licensing 
or certification examination questions; or 

(5) the organization has compiled an appraiser 
licensing or certification examinatit)n pcr- 
fcirmance record for any annual reporting 
period which is substantially below the per- 
formance record of all first-time examination 
candidates. 

Statutory Authority G.S. 9.\\-75{a) and (b). 

SLBCIIAPTER 58D - RE.VE ES I.VTE 
APPRAISERS 

SECTION .0100 - APPI IC A I ION FOR 
.\PPRAISER EKENSE OR C ERIIFICAIE 

.0101 FORM 



NORTH CAROLIN.A REGISTER 



WOO 



PROPOSED RULES 



A person who wishes to file an application for 
a real estate appraiser license or certificate may 
obtain the required form upon request to the 
('ommission. In general, the form calls for in- 
formation such as the applicant's name and ad- 
dress, the applicant's social security number, a 
recent passport size photograph of the applicant, 
places of residence and employment, education, 
and such other information as may be necessary 
to identify the applicant and determine his quali- 
fications and fitness for licensure or certification. 

Statutoty Authority G.S. 93A-73(a): 93A-77. 

.(H02 I ll,l\(; AM) I KKS 

(a) Properly completed applications must be 
received in the Commission's office or post- 
marked not later than the fiUng date established 
by the Executive Director for a scheduled exam- 
ination and must be accompanied by the appro- 
priate fee. Once the application has been filed 
and processed, the application tec may not be 
refunded. 

(b) Ihe following fees shall be charged: 

( 1 ) application for original 

appraiser license $100.00 

(2) application for original 

appraiser certificate $100.00 

(c) Pa\ incnt of application fees shall be made 
by certified check, bank check or money order 
payable to the North Carolina Real Estate 
Commission. 

Siatuioiy Authority G.S. 93A-73(a).(b): 93A-77. 

SECnON .0200 - APl'R.MSKK MCKN.SING AM) 
CKKIII (CATION 

.0201 OlAI 11 ICAIIONS 1 OK Al'I'RAlSKR 
I U KN.Sl RK AM) ( KK 1 II K A I ION 

(a) .Applicants for licensure as a state-licensed 
real estate appraiser and for certification as a 
state-certified real estate appraiser must satisfy 
the qualification requirements stated in G.S. 
93A-73. Licensure as a state-licensed real estate 
appraiser is not a prerequisite tor certification as 
a state-certified real estate appraiser. 

(b) When a state-licensed real estate appraiser 
becomes certified as a state-certified real estate 
appraiser, his licensure shall be immediately can- 
celled by the C'ommission and he must return his 
license certificate and any pocket renewal card to 
the Commission within ten days of the date of 
certification as a state-certified real estate ap- 
praiser. 

Statutory Authority G.S. 93A-73; 93A-77. 

.0202 (IIARACIRR 



(a) At a meeting of the Commission following 
each real estate appraiser licensing or certification 
examination, the applicants who have passed the 
examination shall be considered for licensing or 
certification. When the moral character of an 
applicant is in question, action by the Commis- 
sion wiU be deferred until the applicant has affir- 
matively demonstrated that he possesses the 
requisite truthfulness, honesty and integrity. 

(b) When the moral character of an applicant 
is in question, the Commission shall notify the 
applicant and the applicant shall be entitled to 
demonstrate his character and fitness for licensure 
or certification at a hearing before the Commis- 
sion. 

(c) Notice to the applicant that his moral 
character is in question shall be in writing, sent 
by certified maO, return receipt requested, to the 
address shown upon the application. The appli- 
cant shall ha\e 60 da^'s from the date of receipt 
of this notice to rec^uest a hearing before the 
Commission. 1-ailure to request a hearing within 
this time shall constitute a wai\er of the appli- 
cant's right to a hearing on his application for li- 
censing or certification, and the application shall 
be deemed denied. Nothing in this I^ule shall 
be interpreted to prevent an applicant from re- 
applying for licensure or certification. 

Siatutoiy Authority G.S. 93A-73(cJ; 93A-77. 

.020.? I l( KNSK AM) CKRllUCATK 
RK.NKWAL 

(a) A holder of an appraiser license or certif- 
icate desiring the renewal of such license or cer- 
tificate shall, during the month of June, apply for 
same in wnting upon a form approved by the 
(Commission and shall fi)rward the required fee 
of seventy-five dollars ($75.00). I'orms are 
available upon request to the Commission. 

(b) As a condition of renewal, all licensees and 
certificate holders, either active or inactive, resi- 
dent or non-resident, shall be required to satisfy 
the continuing education requirements set forth 
in Rule .0204 of this Section. 

(c) Any person who acts or holds himself out 
as a state-licensed or state-certified real estate 
appraiser while his appraiser license or certificate 
is expired will be subject to disciplinary action 
and penalties as prescribed in Chapter 93A of the 
North Carolina General Statutes. 

Statutory Authority G.S. 93A-74( a).{b) : 93A-77. 

.0204 COMIM ING KDl CATION 

/\s a prerequisite to renewal of a real estate ap- 
praiser license or certificate for the year July 1, 
1002 - June 30, 1903 and subsequent years, the 



1001 



AORTH CAROLINA REGISTER 



PROPOSED RULES 



licensee or certificate holder shall present evi- 
dence satisfactory to the Commission of having 
completed, during the immediately preceding 
year, education consisting of at least ten class- 
room hours of instruction approved by the 
Commission. 

Statutoiy Authority G.S. 93A-74(a),(b); 93A-77. 

.0205 INACTIVE STATUS 

(a) A licensee or certificate holder shall be as- 
signed by the Commission to inactive status 
upon written request to the Commission. 

(b) A licensee or certificate holder whose ap- 
praiser license or certificate is on Lnacti\e status 
shall be returned to active status upon making a 
written request to the Commission. 

(c) A Uccnsce or certificate holder on inacti\e 
status shall not be entitled to act as a state-li- 
censed or state-certified real estate appraiser; 
however, in order to continue to hold an ap- 
praiser license or certificate, the licensee or cer- 
tificate holder whose license or certificate is on 
inactive status must renew liis. license, including 
payment of the prescribed renewal fee and com- 
pletion of aU continuing education. 

(d) The Commission may take disciplinary ac- 
tion against a licensee or certificate holder on in- 
acti%'e status. 

Statutory Authority G.S. 93A-77. 

.0206 EXPIRED LICENSE OR CERTIFICATE 

(a) E.xpired real estate appraiser licenses and 
certificates may be reinstated within 12 months 
after expiration upon proper application and 
payment to the Conunission of the seventy-five 
dollar ($75.00) renewal fee plus a late fding fee 
often dollars ($10.00) per month for each month 
or part thereof that such license or certificate is 
lapsed. 

(b) Licenses and certificates expired for more 
than 12 months may be considered for rein- 
statement upon proper application, payment of 
the one hundred dollar ($100.00) original license 
or certificate fee, pa\"ment of the one hundred 
tuent\ dollar ($120.00) late filing fee, and pro- 
vision of proof of having obtained continuing 
education equal to the total number of classroom 
hours that would have been required had the li- 
cense or certificate been continuously renewed. 
Such applications will be reviewed by the Com- 
mission to detcrmmc whether an examination 
and/or additional real estate appraisal education 
will be required. 

Siatuioiy Authority G.S. 93A-74{c); 93A-77. 



.0207 PAYMENT OK LICENSE AND 
CERIII ICATR FEES 

Checks given the Commission in payment of 
real estate appraiser license and certificate fees 
which are returned unpaid shall be considered 
cause for licensed or certificate denial, suspen- 
sion, or revocation. 

Statutory Authority G.S. 93A-77. 

.0208 REPL,\CEMENT LICENSE OR 
CERTIFICATE FEE 

A licensee or certificate holder may, by filing a 
prescribed form and paying a five dollar ($5.00) 
fee to the Commission, obtain a duplicate real 
estate appraiser license or certificate or pocket 
card to replace an original license certificate or 
pocket card which has been lost, damaged or de- 
stroyed or if tiie name of the licensee or certificate 
holder has been lawfully changed. 

Statutofy Authority G.S. 93A-74(d): 93A-77. 

.0209 FEDERAL APPRAISER REGIS FRY 

Licensees and certificate holders who are quali- 
fied for enrollment in the federal roster or registry' 
of state-licensed and state-certified real estate ap- 
praisers may apply for enrollment or for the re- 
newal or reinstatement of such enrollment in 
writing upon a form approved by the Commis- 
sion accompanied by the fee established for that 
purpose by the appropriate federal agency or in- 
strumentality. 

Statutory Authority G.S. 93A-79(e); 93A-77. 

SEC! ION .0.100 - APPRAISER EXAMINA I IONS 

.0301 TIME AND PLACE 

(a) Examinations for real estate appraiser li- 
censes and certificates wiU be scheduled at such 
times and places as dctcnnined b\ the E.xecutivc 
L)irector. Applicants will be scheduled for ex- 
amination based on the date of application fding 
in accordance with the Commission's pubhshed 
schedule of examination dates and application 
filing dates. Applicants will be gi\en written 
notice of when and where to appear for e.xam- 
uiation. 

(b) Except as provided m Paragraph (c) of this 
Rule, an applicant who has been scheduled for a 
particular examination date wiU not be resched- 
uled for a later examination date without fding 
another application and fee unless a request to 
be rescheduled is made at least 15 days in ad- 
vance of the sclieduled examination date. A 
scheduled examination date may only be post- 
poned untU one of the next two following sche- 
duled examination dates. 



NORTH CAROLINA REGISTER 



1002 



PROPOSED RULES 



(c) An applicant may be granted an excused 
absence from a scheduled examination if he pro- 
vides evidence satisfactor\' to the Commission 
that his absence was the direct result of an emer- 
gency situation or condition which was beyond 
the applicant's control and which could not have 
been reasonably foreseen by the applicant. A 
request for an excused absence must be promptly 
made in writing and must be supported by ap- 
propriate documentation verifying the reason for 
the absence. A request for an excused absence 
received more than 15 da\s after the examination 
date will be denied unless the applicant was una- 
ble to file a timely request due to the same cir- 
cumstances that prc\ented the applicant from 
taking the examination. 

Statutoty Authority G.S. 93A-73{c); 93A-77. 

.(O02 SLH.IECr MATTKR 

(a) The examination for licensure as a state-li- 
censed real estate appraiser shall test applicants 
on the following general subject areas: 

(1) basic real property law; 

(2) concepts of value; 

(3j forces affecting real estate values; 

(4) residential real estate financing; 

(5) residential construction and design; 

(6) the appraisal process; 

(7) valuation principles and procedures; 

(8) application of \;iluation principles and 
procedures to the valuation of various 
types of residential properties and to re- 
lated appraisal assignments; 

(9) standards of appraisal practice; 

(10) the North Carolina Real Estate Ap- 
praisers Act and related commission rules; 
and 

(11) related subject areas. 

(b) In addition to the subject areas listed in (a) 
of this i\ule, the examination for certification as 
a state-certilied real estate appraiser shall test ap- 
pficants on the following general subject areas: 

(1) income capitalization principles and pro- 
cedures: 

(2) application of valuation principles and 
procedures to the valuation of all types of 
income-producing and other properties 
and to related appraisal assignments: and 

(3) related subject areas. 

Sratiitoiy Authority G.S. 93.l-73icj: 93A-77. 

.0303 RF-E\\M1N.VTI()N 

If an applicant for a real estate license or certif- 
icate fails to pass or appear for an\" examination 
for which he has been scheduled, he shall make 
written application to the Commission upon a 



prescribed form accompanied by the appropriate 
fee if he wishes to be scheduled for another ex- 
amination. 

Statutoiy .Authority G.S. 93A-73.(c); 93A-77. 

.0304 CUK.ATING .WD RELATED 
MISCONDUCT 

Applicants shall not cheat or attempt to cheat 
on an examination by any means, including both 
giving and receiving assistance, and shaU not 
communicate in any manner for any purpose 
w ith any person other than an examination su- 
pervisor during an examination. Violation of this 
Rule shall be grounds for dismissal from an ex- 
amination, invalidation of examination scores, 
and denial of a real estate appraiser license or 
certificate, as well as for disciplinary action if the 
applicant holds an appraiser license. 

Statutoty Authority G.S. 93.4-''3(cj; 93 A -^7. 

.0.105 confiokmiaiha of 

FXAMINAllONS 

Licensmg and certification examinations are the 
exclusive propertv' of the Commission and are 
confidential. No applicant. Licensee, or certificate 
holder shall obtain, attempt to obtain, receive or 
communicate to other persons examination 
questions. \'iolation of this Rule shall be 
grounds for denial of a real estate appraiser li- 
cense or certificate if the violator is an applicant 
and discipfinary action if the violator holds an 
appraiser license. 

Statutory .Authority G.S. 93.4-77. 

.0.^06 FXAMINAFION RKAIKW 

(a) .An applicant who tails an examination may 
review his examination at such times and places 
as are scheduled bv the Txecutive Director. A 
request to review an examination must be made 
not later than the rec^uest deadline date estab- 
lished by the Fxecutive Director for a scheduled 
examination review date. Failure to request an 
appointment to review an examination by the 
request deadline date shall constitute a waiver of 
the right to review such examination. .Applicants 
who pass an examination may not review their 
cxammation. .Applicants who review their ex- 
amination may not be accompanied by any other 
person at a review session, nor may any other 
person review an examination on behalf of an 
applicant. 

(b) :\n applicant may be granted an excused 
absence from a scheduled examination review if 
he provides evidence satisfactory' to the Com- 
mission that his absence was the direct result of 



100.^ 



iXORTH CAROLINA REGISTER 



PROPOSED RULES 



an emergency situation or condition which was 
beyond the applicant's control and which could 
not have been reasonably foreseen by the appli- 
cant. A request for an excused absence must be 
promptly made in writing and must be supported 
by appropriate documentation verifying the rea- 
son for the absence. A request for an excused 
absence received more than 15 days after the 
scheduled examination review will be denied un- 
less the applicant was unable to file a timely re- 
quest due to the same circumstances that 
prevented the applicant from attending the ex- 
amination review. An applicant who fails to 
appear for a scheduled examination review and 
who does not obtain an excused absence in ac- 
cordance with this Rule shall be deemed to have 
waived his right to review his examination. 

Statutoiy Authority G.S. 93A-73(cj; 93A-77. 

SECTION .0400 - GENERAL APPRAISAL 
PRACTICE 

.0401 USE OF TITLES 

(a) A state-licensed real estate appraiser shall 
utilize the term "state-licensed residential real es- 
tate appraiser" when performing appraisals of 
residential real estate, as defmcd in G.S. 93A-72, 
or any interest therein. A state-certified real es- 
tate appraiser shall utilize either the term "state- 
certified general real estate appraiser" or 
"statc-ccrtificd residential' general real estate ap- 
praiser" when performing appraisals of all types 
of real estate or any interest therein. 

(b) Licensure or certification as a real estate 
appraiser is granted only to persons and does not 
extend to a business entity operated by a state- 
licensed or state-certified real estate appraiser. 

Statutofj Authority G.S. 93A-77. 

.0402 DISPLAY OF LICENSES AND 
CERTIFICATES 

(a) The real estate appraiser license or certif- 
icate of a managing appraiser and the license or 
certificate of each licensee or certificate holder 
engaged in real estate appraisal activities at the 
office of the managing appraiser shall be promi- 
nently displayed at such office. 

(b) The annual license or certificate renewal 
pocket card issued by the Commission to each 
state-licensed or state-certified real estate ap- 
praiser shall be retained by the licensee or certif- 
icate holder as evidence of licensure or 
certification. 

Statutoiy Authority G.S. 93A-77. 

.0403 ADVERTISING 



(a) When advertising or otherwise holding 
himself out as a real estate appraiser, a state-li- 
censed real estate appraiser shall identify himself 
as a "state-licensed residential real estate ap- 
praiser" and a state-certified real estate appraiser 
shaU identify himself as either a "state-certified 
general real estate appraiser" or a "state-certified 
residential/general real estate appraiser". 

(b) A state-licensed or state-certified real estate 
appraiser doing business as a partnership, associ- 
ation, corporation or other business entity shall 
not represent in any manner to the public that 
the partnership, association, corporation or other 
business entity is either licensed or certified by 
the State of North Carolina to engage in the bu- 
siness of real estate appraising. 

(c) In the event that any hcensee or certificate 
holder shall advertise in any manner using a firm 
name, corporate name, or an assumed name 
which does not set forth the surname of the li- 
censee or certificate holder, he shall first notify 
the Commission in writing of such name and 
furnish the Commission w ith a copy of each re- 
gistration of assumed name certificate tiled with 
the otfice of the county register of deeds in com- 
pliance with Section 66-68, North Carolina 
General Statutes. 

Statutory' Authority G.S. 93A-7l(d); 93A-77. 

.0404 CII.\NGE OF NAME OR ADDRESS 

All licensees and certificate holders shall notify 
the Commission in writing of each change of 
business address, residence address, or trade 
name witliin ten days of said change. The ad- 
dress shall be sufficiently descriptive to enable the 
Commission to correspond with and locate the 
licensee or certificate holder. 

Statutory Authority G.S. 93A-77. 

.0405 CERTIFIED APPRAISALS 

(a) A state-certified real estate appraiser may 
perform certified appraisals on all types of real 
estate and may identify such appraisals as being 
"certified". 

(b) i-VU real estate appraisal assignments per- 
formed and all appraisal reports issued by state- 
certified real estate appraisers shall be deemed to 
be "certified" appraisals unless otherwise indi- 
cated on the appraisal report, or, in the event of 
an oral appraisal report, the person receiving the 
report is clearly uiiformed by the state-certified 
appraiser that the appraisal is not a "certified" 
appraisal. 

Statutoiy Authority G.S. 93A-7/(g); 93A-77. 



NORTH CAROLINA REGISTER 



1004 



PROPOSED RULES 



.04(16 AI'l'R AIS \I. KKI'OKIS 

(a) Each written appraisal report prepared by 
or under the direction of a state-hcensed or 
state-certified real estate appraiser shall bear the 
signature of the state-licensed or state-certified 
appraiser, the license or certificate number of the 
licensee or certificate holder in whose name the 
appraisal report is issued, and the designation 
"state-licensed residential real estate appraiser" 
or the designation "state-certified general real es- 
tate appraiser" or "state-certified residential/ 
general real estate appraiser", as applicable. Each 
such appraisal report shall also identify any other 
person who assists in the appraisal process other 
than by providing clerical assistance. 

(b) E\'ery state-licensed and state-certified real 
estate appraiser shall affix or stamp to all ap- 
praisal reports a seal of a design authorized by the 
Commission which shall set forth the name and 
license or certificate number of the appraiser in 
whose name the appraisal report is issued and 
shall identify the appraiser as a "state-licensed 
residential real estate appraiser" or as a "state- 
certified general real estate appraiser" or "state- 
certified residential general real estate appraiser", 
as applicable. 

Statuton- Authorily G.S. 93A-'^7. 

.0407 MANAGINC; AIM'RAISKK 

(a) .\ "managing appraiser" shall be designated 
with the Commission for each appraisal firm and 
each combined real estate brokerage and ap- 
praisal firm for which real estate appraisals are 
peifoimed b\': 

( 1 ) tu o or more state-licensed or state-certi- 
fied real estate appraisers who are em- 
ployed by or associated with the firm; or 

(2) unlicensed or uncertified assistants, other 
than clerical employees, who are em- 
plo_\ed b\' or associated with the fimi and 
who assist a state-licensed or state-certi- 
fied real estate appraiser in the pertbnn- 
ance of real estate appraisals. 

If one or more state-certified real estate appraisers 
is cmploNcd b\' or associated with the firm, the 
managing appraiser must be a state-certified real 
estate appraiser; howe\er. il only state-licensed 
real estate appraisers are employed by or associ- 
ated with the firm, the managing appraiser may 
be a state-licensed real estate appraiser. 

(b) The designated managing appraiser shall 
be responsible for: 

( 1 ) the proper displa)' ol licenses and certif- 
icates of all state-licensed and state-certi- 
fied real estate appraisers employed by or 
associated with the finn, and ascertaining 
whether each licensee or certificate holder 



employed by or associated with the firm 
has complied with Rule .0203 of this 
Subchapter; 

(2) the proper notification to the Commission 
of any change of business address or trade 
name of the firm and the registration of 
any assumed business name adopted by 
the firm for its use; 

(3) the proper conduct of ad\ertising of ap- 
praisal services by or in the name of the 
firm; 

(4) the proper retention and maintenance of 
records relating to appraisals conducted 
by or on behalf of the firm; 

(5) the maintenance of a record for each of the 
firm's unlicensed and uncertified assistants 
that generally describes the nature and 
extent of assistance rendered in con- 
nection with each appraisal; and 

(6) the maintenance of a record for each of the 
finn's state-licensed real estate appraisers 
that generally describes the nature and 
extent of assistance rendered when assist- 
ing a state-certified real estate appraiser in 
performing an appraisal. 

No licensee or certificate holder shall be manag- 
ing appraiser of more than one appraisal firm or 
combined real estate brokerage and appraisal 
firm. 

(c) Each managing appraiser shall notify the 
Commission in writing of any change in his sta- 
tus as managing appraiser within ten days fol- 
lowing the change. 

Statiitoiy Authorily G.S. 93.4-77. 

.0408 sn'FKMSION OF I NLICKNSED 
AND I NrKKriFIKD .ASSISTANTS 

A state-licensed or state-certified real estate ap- 
praiser may emplo\' a person or persons not li- 
censed or certified as a real estate appraiser to 
assist in the performance of real estate appraisals, 
pro\'ided that the state-licensed or state-certified 
real estate appraiser; 

(1) actively and personally super\'ises the unli- 
censed and uncertified assistant; 

(2) re\icws all appraisal reports and supporting 
data used in connection with appraisals in 
which the ser^'ices of an unlicensed and un- 
certified assistant is utilized; 

(3) signs all appraisal reports for appraisals in 
which the services of an unlicensed and un- 
certified assistant was utilized: and 

(4) prepares and fuiTiishes to the managing ap- 
praiser, if applicable, and to each unlicensed 
and uncertified assistant whose services were 
utilized in connection with the appraisal, a 
report on a fomi prcscnbed by the Com- 



100. ^ 



SORTH CAR0LIN.\ REGISTER 



PROPOSED RULES 



mission describing the nature and extent of 
assistance rendered by the unlicensed and 
uncertified assistant in connection with the 
appraisal, and places a copy of such report 
in the supporting file for the appraisal. 

Statutory Authority G.S. 93A-7/(f); 93A-77. 

.0409 SL PERMSION OF LICENSED 
APPRAISERS 

When a state-licensed real estate appraiser as- 
sists a statc-ccrtified real estate appraiser in the 
performance of a real estate appraisal and the re- 
sulting appraisal report is to be signed by the 
state-certitled real estate appraiser, the state-cer- 
tified real estate appraiser shall: 

actively and personally supervise the state- 
licensed real estate appraiser; 

review the appraisal report and supporting 
data used in connection with the appraisal; 
and 
(3) prepares and furnishes to the managing ap- 
praiser, if applicable, and to each state-li- 
censed real estate appraiser who services 
were utilized in connection with the ap- 
praisal, a report on a form prcscnbcd by the 
Commission describing the nature and ex- 



ID 



tent of assistance rendered by the state-li- 
censed real estate appraiser in connection 
with the appraisal, and places a copy of such 
report in the supporting file for the ap- 
praisal. 

Statutoty Authority G.S. 93A-77. 

SECTION .0500 -STANDARDS OF APPRAISAL 
PRACTICE 

.0501 APPRAISAL STANDARDS 

(a) Ever>' state-licensed and state-certified real 
estate appraiser shall, in performing the acts and 
services of a state-licensed or state-certified real 
estate appraiser, comply with those appraisal 
practice standards known as Standards 1 and 2 
of the "Uniform Standards of Professional Ap- 
praisal Practice" promulgated by the Appraisal 
Standards Board of the Appraisal Foundation, 
which standards are hereby adopted by reference 
in accordance with G.S. 150B- 14(c). 

(b) Copies of Standards I and 2 of the "Uni- 
form Standards of Professional Appraisal Prac- 
tice" are available upon request to the 
Commission. 

Statutoty Authority G.S. 93A-77. 



NORTH CAROLINA REGLSTER 



1006 



FINAL RULES 



J he List oj Rules Codified is a listing of 
rules that were filed to he effective in the 
month indicated. 

Jxules filed for publication in the NCAC 
may not be identical to the proposed text 
published previously in the Register. Please 
contact this office if you ha\'e any questions. 



/Adopted rules filed by the Depaitments of 
Correction, Revenue and Transportation are 
published in this section. These departments 
are not subject to the provisions ofG.S. I SOB. 
Article 2 requiring publication in the N.C. 
Register of proposed rules. 

LJ pon request from the adopting agency, the 
te.xt of rules will be published in this section. 



Pi 



unctuation, typographical and technical 
changes to ndcs are incorporated into the 
List of Rules Codified and are noted as * 
Correction. These changes do not change the 
effective date of the rule. 



TITLE 5 - DLPAR LMLM OF 
CORRECTION 



(2) Participates in standardization and evalu- 
ation of diagnostic and classification pro- 
cedures; 

(3) Super\'ision and direction of the Presen- 
tence Diagnostic Program; 

(4) Staff training for diagnostic and classifica- 
tion pcrsoruicl; 

(5) Supervision and direction of central mon- 
itoring activities; 

(6) Supervision and direction of central trans- 
fer activities; and 

(7) Other duties and responsibilities as as- 
signed. 

(c) Case Factor and Committee Review Proc- 
ess, riiis policy establishes procedures for cus- 
tody classification of inmates using a case factor 
re\iew process and a committee review process. 
1 he case factor rc\'iew process is a procedure us- 
ing an objective review of case factors specified 
on the classification form to govern the regular 
assignment of inmates to close, medium and mi- 
nimum custody. The committee review process 
is a procedure used only for assignments to 
maximum custody, extended protective custody, 
extended administrative segregation, minimum 
custody levels II and III, and for consideration 
of exceptions to custody assignments derived 
from the case factor review process. 

History \(>te: Statutoiy Authority G.S. 14S-4; 
MS- If: f4S-J6; 
Eff Tcbruaiy I, 1976: 
Amended Eff Eebniary /, 1990: 
December f, f9S4: September 28. f978. 



CII.\PT[ K 2 - ni\ ISION C)l I'RISONS 

SI BCIIAPTKR 2C - CI ..VSSM ICATION 

SECTION .0100 - CI ASSII ICATION 
C OMMI III KS 

.0101 C.F.NEUAI. 

(aj Puipose. The priman function of offender 
classification is the systematic process for coor- 
dinating inmate assessment and assignment pro- 
cedures in order to minimize community and 
institutional risk, to pros ide opportunities tor the 
productivity and development of the inmate, and 
\o ensure that academic and vocational needs of 
inmates are an integral part iif assignment deci- 
sions. 

(b) .Administrative C'oordination and Review. 
The Manager of the Classification Services Sec- 
tion will coordinate the following classification 
functions: 

( 1 ) Participates in the development of classi- 
fication policy and procedures; 



SKCnON 



1000 - imkksiah 

COMPACT 



COKKIXnONS 



.1002 .\PPI ICATION 

Transfers of inmates to or from the custody of 
the North Carolina Department of Correctitin 
shall be on a cooperative exchange basis founded 
upon the best interests of the State of North Ca- 
rolina, Department of Correction, and the incar- 
cerated offender. 

The purpose of the Interstate Corrections 
Compact as prescribed by law provides for the 
full utilization and improvement of institutional 
facilities and the provision of adequate programs 
for the confinement, treatment, and rehabilitation 
of V arious types of offenders through the mutual 
development and execution of programs for the 
ctiiifincment. treatment, and rehabilitation ot of- 
fenders. 

Nothing m lliis Section shall be construed to 
create on behalf of any inmate any right or enti- 
tlement to a transfer to or from the custody of 
the North Carolina Department of Correction. 



1007 



NORTH CAROLINA REGISTER 



FINAL RULES 



Transfers under this Section shall be upon the 
following conditions: 

(1) to provide for the personal safety of an in- 
mate subject to an identifiable threat of 
harm after consideration of all available 
housing alternatives. 

(2) to provide for effective pre-release program 
assignments for inmates in minimum cus- 
tody within twelve months of an established 
release date at the time of transfer. 

(3) in any case where the Secretary of Cor- 
rection issues a fmdina that such a transfer 



is in the best interest of the State of North 
Carolina, the Department, the inmate, and 
criminal justice objectives. 

History Note: Filed as a Temporary Amendment 
Fff. December 21, 1989 For a Period of 42 
Days to F.xpire on January 31 , 1990; 
Statutory Authority G.S. 148-1 1; 
148-119; 148-120; 
Fff. March 5, 1980; 
Amended Fff Februaiy f 1990; March I, I9S3. 



NORTH CAROLINA REGISTER 



urns 



FL\AL RULES 



1 he List of Rules Codified is a listing ofndes that were filed to be effecth-e in the month indicated. 

l\ules filed for publication in the SCAC may not be identical to the proposed text published pre- 
viously in the Register. Please contact this office if you ha\'e anv questions. 

/I dopted rules filed by the Departments of Correction. Revenue and Transportation are published 
in this section. These departments arc not subject to the provisions ofG.S. 150B, Article 2 requiring 
publication in the \.C. Register of proposed titles. 

LJ pon request from the adopting ageticy, the le.xt of tales will be published in this section. 

lunctuation. typographical and technical changes to rules are incorporated into the I.ist of Rules 
Cotlificil and are noted as * Correction, fhese changes do not change the effective date of the nile. 



NORIII CAROLINA ADMIMSIRAXn K CODE 

LIST OF RLLIS CODIFILD 

JANUARY 1989 



AGENCY 

DKrAKlMKM Ol A(.KK I I 1 I KK 



NCAC 9L .0502 
.0519 

37 .0202 - .0203 

38 .0102 

.0201 - .0203 
.0301 
.0401 
4SB .0023 



AC HON TAKEN 



.Amended 
\mendcd 
Amended 
\mended 
\ mended 
Amended 
Amended 
Amended 



I1FI'\RrMKNT OI- KrONOMir Wn rOMMIMIA OFMI OPMKM 



4 NCAC lf^A .0001 
ni 1' AK IMKM Ol- rORKh ( HON 

5 NCAC 21' .24111 - .2404 
OKl'MOMIM Oh Cn. 11 R\l, Rl SOIRCKS 



.Amended 



Adopted 



7 NCAC 4N .0202 .Amended 

.0301 - .0304 Adopted 

5 .0203 - .0204 .Amended 

Ol I K KS OV TUF. G(n KRNOR AND 1 IFC IKN \M C;0\ KRNOR 

9 NCAC 213 Executive Order Number 99 

LIT. December 13. 19S9 
E.\ecuti\e Order Number 100 



1009 



.\ORTH CAROLiyA REGISTER 



FINAL RULES 



rff. December 14, 1989 
DKI' AKIMKM OT III MAN KKSOIRriS 

10 NCAC IB .0418 -.0419 Adopted 

* Correction 
Adopted 
Adopted 
Amended 

* Correction 
Adopted 
Amended 
Amended 
Repealed 
Amended 
Repealed 
y\mended 
Amended 
/Vmended 
Adopted 
Amended 
Amended 

* Correction 
Amended 
Amended 
Adopted 

* Correction 
Amended 
Amended 
Repealed 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Repealed 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Adopted 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Adopted 
Amended 
Adopted 
Adopted 
Amended 
Amended 
/Vmended 



IB 


.0418 - 


.0419 


3C 


.0108 




3D 


.0801 
.1001 




3E 


.0316 




311 


.0306 




3R 


.0109- 


.0110 




.0212 - 


.0213 




.0303 - 


.0306 




.0307 - 


.0308 




.0309 






.0312 






.0313 






.0315- 


.0317 




.0408 






.0423 




3S 


.0207 
.0211 
.0307 
.0308 
.0901 
.0903 
.1003 




3L" 


.0703 
.1701 




7n 


.0101 
.0103 
.0337 
.0347 






.0349 - 


.0351 




.0502 




8D 


.0701 




lOA 


.1935 
.1936 






.1937 - 


.1942 




.1944 






.1946 - 


.1950 




.1951 - 


.1958 




.1960- 


.1961 




.1964 




lOD 


.1642 




14K 


.0103 
.0403 




14\I 


.0601 
.0606 
.0608 
.0616 






.0619 - 


.0620 


ISM 


.0704 
.1402 
.1410 




19C 


.0702 




19II 


.0106 




47B 


.0404 





NORTH CAROLINA REGISTER 10 10 



FI.\AL RLLES 



1)1 I' \R I MKN I Ol I\S1 R \\( K 



11 



NCAC 



.1102 
.1106 

.1107 



I)KI'\RIMFM CM- Ml SIICF 



lOQ 



Amended 
Amended 
Adopted 



12 



NCAC 



"D .0202 

.0301 
.0702 

.0707 
.0S02 



lOB 



,0103 

.0106 - .0107 

.0204 

.0301 - .0302 

.0304 - .0305 

.0406 

.0502 

.0505 

-0601 

.ir02 

.os;o2 

.0903 - .0904 

.0908 

.1002 

.1102 - .1104 

.1201 - .1206 

.2001 - .2002 

.2104 - .2105 



Temp. Amended 

Expires 07-01-90 

Amended 

Temp. Amended 

Expires 07-01-90 

Adopted 

Temp. .Amended 

Expires u''-01-90 

Amended 

Adopted 

.Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

-Amended 

.Amended 

.Amended 

.Amended 

\mended 

\mended 

\dopted 

Amended 

.Amended 



1)1 I' \K1MKM Ol I NMRONMIM, UK Mill. \M) N \Il K AI RKSOl H( KS 



NCAC 



TransfeiTed and Reeodified 

to 15A NCAC 1 

Eff. November 1. 19S9 

Transferred and Recodified 

to 15.A NCAC 2 

Eff. November I. 19S9 

Transferred and Recodified 

to 15A NCAC 3 

Eff November 1. 19S9 

Transferred and Recodified 

to 15.A NCAC 4 

Eff. November 1. 19S9 

Transfened and Recodified 

to 15A NC.\C 5 

EtT November 1. 1Q'n9 

Transfened and Recodified 

to 15.\ NC.\C 6 

Eff. November 1. 19SQ 

Eransferred and Recodified 

to 15A NC.\C ~ 

Eff. November 1. 19S9 

Transfened and Recodified 



mil 



yORTH CAROLIXA RECISTER 



FINAL RULES 



9 

10 
12 
15 

22 



1 5A NCAC 1 1 


.0101 - 


.0102 




.0201 - 


.0209 


2B 


.0216 
.0219 






.0303 - 


.0304 




.0309 






.0311 - 


.0312 




.0315- 


.0317 


2D 


.090 1 




711 


.1102 
.1202 
.1302 
.1402 
. 1 502 
.1602 
.1802 
.1902 




7J 


.0206 




OFPARIMRNT OF IMUI IC FOl TAIION 



0202 - .0203 



16 NCAC 6A .0003 
DFI'MMMFNr OF RF\ FM K 

17 NCAC IC .0402 
no WW Ol NFRSING 

21 \C.\C 36 
IK)\KI) Ol I'll \KM \rV 

21 NCAC 46 .1317 
no \Ri) Ol I'K AC I K iN(; l's^ ( iioi o(;fsfs 

21 NCAC 54 .1605 
\a \l FSIMF ( OMMISSION 



to 15A NCAC 8 

Eff. November 1, 1989 

TransfciTcd and Recodified 

to 15A NCAC 9 

Eff. November 1, 1989 

Transferred and Recodified 

to ISA NCAC 10 

Eff November 1, 1989 

Transferred and Recodified 

to 15A NCAC 12 

Eff. November 1, 1989 

Transferred and Recodified 

to 15A NCAC 15 

Eff. November 1, 1989 

Transferred and Recodified 

to 15A NCAC 22 

Eff. November 1, 1989 

Adopted 

Adopted 

Amended 

Adopted 

/Vmended 

Amended 

Amended 

Amended 

* Correction 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 



Adopted 



:i 



NCAC 



58A .1000 



Amended 



Amended 



Amended 



/Xmendcd 



1 raiiNtenV!.! and Rceodifieil 
to 21 NCAC 5XC .01011 



NORTH CAR()LL\A RECISTER 



ion 



FINAL RULES 



nff. November 27, 1989 

.1101 Transferred and Recodified 

to 21 NCAC 5SC .0301 
EfT. November 27, 19S9 

.1102 Transferred and Recodified 

to 21 NCAC 5SC .0302 
nff. November 27, 1989 

.1104 Transferred and Recodified 

to 21 NCAC 58C .0303 
Eff. November 27. 1989 

.1105 Transferred and Recodified 

to 21 NCAC 58C .0304 
Eff. November 27, 1989 

.1107 Transferred and Recodified 

to 21 NCAC 58C .0305 
Eff. November 27, 1989 

.1108 Transferred and Recodified 

to 21 NCAC 58C .0306 
Eff. November 27, 1 989 

.1109 Transferred and Recodified 

to 21 NCAC 5SC .0307 
Eff. November 27, 1989 

.1111 Transferred and Recodified 

to 21 NC.\C 5NC .0309 
Eff. November 27. 1989 

.1113 Transferred and Recodified 

to 21 NCAC 58C .0310 
Eff. November 27. 1989 

.1301 Transferred and Recodified 

to 21 NC.\C 58C .0201 
Eff. November 27, 1989 

.1303 Transferred and Recodified 

to 21 NC.AC 58C .0203 
Eff. November 27. 1989 

.1304 Transferred and Recodified 

to 21 NCAC 58C .0204 
Eff. November 27, 1989 

.1305 Transferred and Recodified 

to 21 NCAC 58C .0205 
Eff. November 27. 1989 

. 1 306 Transferred and Recodified 

to 21 NCAC 58C .0206 
i:ff. November 27, 1989 

.1307 Transferred and Recodified 

to 21 NCAC 58C .0207 
Eff. No\ember 27, 1989 

.1308 Transferred and Recodified 

to 21 NC.\C 58C .0208 
Eff. NoN-ember 27. 1089 

.1309 Transferred and Recodified 

to 21 NC-\C 5SC .(1209 
Eff. November 27, E)SO 

.1310 Transferred and Recodified 

to 21 NC.\C 58C .0210 
Eff. November 27, 1089 

.1311 Transferred and Recodified 

to 21 NCAC 58C .0211 
Iff. November 2". 1989 

.1312 Transferred and Recodilied 



lOL^ NOR TH CAROLINA REGIS TER 



FINAL RULES 



.1313 
.1314 
.1315 
.1316 
.1317 
.1318 



to 21 NCAC 58C .0212 
rff. November 27, 1989 
Transferred and Recodified 
to 21 NCAC 5SC .0213 
Eff. November 27, 1989 
Transferred and Recodified 
to 21 NCAC 58C .0214 
Eff. November 27, 1989 
Transferred and Recodified 
to 21 NCAC 58C .0215 
Eff. November 27, 1989 
Transferred and Recodified 
to 21 NCAC 5SC .0216 
Eff. November 27, 1989 
TransfeiTcd and Recodified 
to 21 NCAC 58C .0217 
Eff. November 27, 1989 
Transferred and Recodified 
to 21 NCAC 58C .0218 
Eff. November 27, 1989 



HOARD or .SAM lAKIAN I XAMINKRS 



NCAC 62 .0316 
.0319 
.0403 
.0405 



Amended 
Amended 
Amended 
Amended 



OIFICK Ol SIAIK I'KK.SOWKI. 



NCAC 1 B .0435 - .0436 

IC .0211 
ID .0101 - .0103 

.0108 

.0202 - .0204 

.0210 

.0211 - .0213 

.0302 

.0303 

.0304 

.0308 

.0402 

.0404 

.0406 

.0511 

.0601 - .0603 

.0605 

.0606 

.0608 - .0610 

.0702 

.0704 

.0705 

.0706 - .0710 

.0801 

.0802 - .0803 

.0806 

.0808 

.0901 

.0904 - .0905 



Adopted 

y\ mended 

Amended 

Repealed 

Repealed 

Amended 

Adopted 

Repealed 

Amended 

Repealed 

Adopted 

Repealed 

Repealed 

Adopted 

Amended 

Repealed 

Amended 

Repealed 

Adopted 

Repealed 

Repealed 

Amended 

Adopted 

Amended 

Repealed 

Repealed 

/Xtlopted 

/\mended 

Repealed 



NORTH CAROLINA REGISTER 



1014 



FINAL RULES 





0906 






0'X)8 






09 1 - 


.0911 




1101 - 


.1106 




11 OS - 


.1109 




1115 






1117- 


.1120 




1122- 


.1128 


E 


0501 - 


.0504 




0506 - 


.0507 




0511 




.1 


0001 - 


.0903 


K 


0603 - 


.061 1 




0612 - 


.0613 


O 


0101 






0201 - 


.0206 




0301 - 


.0305 



Amended 

Amended 

Adopted 

Repealed 

Repealed 

Repealed 

Repealed 

Adopted 

Repealed 

Repealed 

Repealed 

y\dopfed 

Repealed 

Adopted 

Adopted 

Adopted 

Adopted 



I Illy 



NORTH CAROLINA REGISTER 



NORTH CAROLINA ADMINISTRA THE CODE CLASSIFICA TION SYSTEM 

TITLK/MAJOR DIMSIONS OF llIK NOR IH CAROLINA ADMINISTRA TIVi: ( ODK 
MILK DII'ARIMINT 

1 Administration, Department of 

2 Agriculture, Department of 

3 Auditor, Department of State 

4 Hconomic and Community Development, Department of 

5 Correction, Department of 

6 Council of State 

7 Cultural Resources, Department of 

8 riections. State Board of 

9 Governor, Office of the 

10 Human Resources, Department of 

11 Insurance, Department of 

12 Justice, Department of 

13 I abor. Department of 

14A Crime ("ontrol and Public Safety, Department of 

15 rn\ironmcnt. Health, and Natural Resources, Department of 

16 Public I'ducation, Department of 

17 Rc\enue, Department of 

18 Secretap," of State, Dejiartmcnt of 
19A Transportation, Department of 
20 Treasurer, Department of State 

*21 Occupational I icensing Boards 

22 Administrati\e Procedures 

23 Community Colleges, Department of 

24 Independent Agencies 

25 State Personnel, Office of 

26 Administrative Hearings, Office of 

NOIli: Title 21 ccnitains the chapters of the various occupational licensing boards. 
( MAPI 1 R IK KNSINC. HOARIIS 

2 Architecture. Board of 

4 Auctioneers, Commission for 

6 Barber Examiners, Board of 

8 Certified Public Accountant Examiners, Board of 

10 Chiropractic I'xaminers, Board of 

12 General Contractors, Licensing Board for 

14 Cosmetic Art Lxaminers, Board of 
16 Dental Examiners, Board of 

15 Electrical Contractors. Board of Examiners of 

20 Eoresters, Board of Registration for 

21 Geologists. Board of 

22 Hearing Aid Dealers and litters Board 
26 Landscape .Ajcliitects, Licensing Board of 

28 Landscape Contractors, Registration Board of 

31 Martial <S: E'amily riierapy Certification Board 

32 Medical I'xaminers, Board of 

33 Midwifery Joint Committee 

34 Mortuary Science, Board of 

36 Nursing, Board of 

37 Nursing Home Administrators. Board of 

38 Occupati<.)nal 1 herapists. Board of 
40 Opticians. Board of 

42 Optometry, Board of Examiners in 



NOR TH CAROLINA REGIS TER 1 01 6 



yORTH CAROI.ISA ADMIMSTRA TI\ E CODE CLASSIEICA TIGS SYSTEM 



44 Osteopathic I'xamination and Registration, Board of 

46 Pharmacy. Board of 

48 f'h\sical Therapy Hxamincrs. Board of 

50 I'lumbing and Heating Contractors, Board of 

52 Podiatr\ F.xaminers. Board of 

53 Practicing Counselors. Board of 

54 Practicing Psychologists, Board of 

56 Professional Engineers and Land Suneyors, Board of 

58 Real fistate Commission 

60 Refrigeration I:.\aminers. Board of 

62 Sanitarian I'xamincrs, Board of 

63 Social Work, CertiJlcation Board for 

64 Speech and language Pathologists and 

.Audiologists. Board of Examiners of 

66 \'eterinar\' Medical Board 



lOr \()R 77/ C. IROLI.XA REGIS TER 



CUM if LA THE INDEX 



CUMULA TIVE INDEX 

(April I9S9 - March 1990) 



1989 - 1990 



Pages 



Issue 



1 - 


151 


1 - 


April 
April 
May 
May 

June 


152 - 
193 - 
217 - 
290 - 


192 

216 

289 

311 


2- 

3- 

4- 

5- 


312 - 


364 


6- 


June 


365 - 
455 - 


454 

477 


7- 

8- 


July 
July 


478 - 


521 


9- 


Auszust 


522 - 
585 - 


584 

616 


10- 

11- 


August 

September 

Scptemher 


617 - 


658 


12- 


659 - 


712 


13- 


October 


713 - 


765 


14- 


October 


766 - 


801 


15- 


November 


802 - 


825 


16- 


November 


826 - 


856 


17- 


December 


857 - 


891 


18- 


December 


892 - 


929 


19- 


January' 


930 - 


1020 


20- 


January" 



;\0 - Admiiiistrati\'e Order 

AG - /\ttoniey General's Opinions 

C - Correction 

FR - Final Rule 

GS - (jeneral Statute 

JO - Judicial Orders or Decision 

\I - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements ot Organization 

TR - lemporapv' Rule 



ADMINFSrRAIION 

State Coiislniction, 827 PR 

admimsiraiim; im arinc.s 

C}eneral, 87') PR 
lleannas Division, 8S0 PR 
Rules Division, 880 PR 

admimsiraiim: ordi r 

Administrative Order, 4, 152, 802 



NORTH CAROLINA REGISTER 



lOIS 



ClMVLATn E ISDEX 



AC.RK I I II RI 

Cotton Warehouse, 220 PR 

Gasoline and Oil Inspection F3oard. 931 PR 

Markets. 21"? PR, 546 PR 

Pesticide Board. 2^2 PR 

Plant C^msenation Board. 106 PR 

Plant Industp.-. 153 PR. 2 IS PR. 895 PR 

State Fair, 217 PR 

{ OMMIMIV ( OLLKCKS 

Ikiard of CommunitN' Colleges, 352 PR 

( ORRIXIION 

Departmental Rules. S15 1 R 

Division of Pnsons. 4^2 PR, 646 I'R, 759 FR, 817 FR, 883 FR, 1007 FR 

( RIMi: COMROL .\M) PIHIIC SAI KTV 

Victim and Justice .Ser\ices. 573 I'R 

niri R Ai. RrsoiRcrs 

.\rchi\es and Iliston, 3~0 PR. 455 PR. 593 PR. 720 PR 

.\i1s (\nincil. 371 PR 

C.S.S. North Carolina Battleship Commission. 548 PR 

ECONOMIC AND COMMl Nil V DFA KIOPMIN I 

Cemeten- Commission. 198 PR. 766 PR 

Community .Assistance. 85S PR 

Departmental Rules, Oi)l PR 

Finance Center, 368 PR 

Hazardous Waste Manaszcment C^immission. 716 PR, 834 PR 

.Milk (\Mnmission, 455 VK. 834 I'R 

Seafood Industrial Park Authonty. 806 PR 

1.1)1 (AIION 

F'lementan and Secondan Iducation. 253 I'R. 205 PR. 51 1 PR. 730 PR, S43 PR 

KMX riONS, SIA 1 1. HOARD Ol 

Departmental Rules, 661 PR 

KNA IRONMFN I. IIKAITH. AND NATIRAI. RI SOI R( KS 

Coastal Management, 239 I'R. 508 PR. 574 PR, 735 I'R 

Community Assistance, 134 PR 

Departmental Rules, 601 PR 

Fconomic Oppoilunitw PN PR 

Fnvironmental Mana-iement. IS PR, 160 PR, 202 PR, 23S PR. 295 PR. _M7 PR. 

431 PR. 456 PR. 700 PR, 730 PR. 866 PR, 092 PR 
Go\emor s \\'aste Management Board. 61 ^ C 
1 and Resources. 868 PR 
Marine Fisheries. 47 PR. 457 PR, 866 PR 
NV'ildlifc Resources and \\'ater Safetv, 134 PR. PS PR. 20"^ PR. 252 PR. 5~4 PR. 

■:'00 PR. ■:'38 PR. ""6 PR. SdO PR. S-^2 PR. 01)3 PR 

FINAL DF( ISION I 1 IIFRS 

Noting Rights Act. 5. 193. 367, 523. 587, 618, 659, 714, 803. 857 

FINAI RFI.IS 

I ist ,^i Rules Codified, 183 1 R. 2^4 I R. 3i)3 I'R. 445 I R. 515 \R. 600 1 R, -^04 IR. "88 1 R. 
847 FR. 1009 FR 



1019 AORTH CAROLI.XA REGISTER 



CUMULA TIVE INDEX 



govi:r\or/lt. go\ ernor 

Executive Orders, 1, 290, 312, 365, 478, 522, 585, 713, 826, 892, 930 

HUMAN RESOl RCES 

Aging, Division of, 859 PR 

Departmental Rules, 372 PR 

Facility Ser\iccs, 199 PR, 377 PR, 594 PR 

Governor's Waste Management Board, 552 PR 

Health Ser\ices, 153 PR,^3I5 PR, 405 PR, 661 PR, 933 PR 

Medical Assistance, 158 PR, 294 PR, 455 PR, 549 PR, 601 PR, 620 PR, 722 PR, 808 PR 

Mental Health, Mental Retardation and Substance Abuse Scr%'ices, 17 PR, 417 PR, 685 PR, 960 PR 

Social Ser\'ices. 550 PR, 773 I'R 

Vocational Rehabilitation Services, 7 PR, 766 PR 

Water Treatment Facility Operators Board of Certification, 549 PR 

INDEPFADFAT AGFACIES 

Housing Finance Agency, 459 PR 

rsSlRAME 

Admission Requirements, 836 PR 

Agent Ser\'ices Division. 561 PR 

Fndncerina and Buildinc Codes. 775 PR 

Fue and Casualtv Division, 202 PR, 479 PR. 689 PR, 986 PR 

Fife, Accident and Health Division, 690 PR 

.11 STICK 

Alarm Systems Ficensing Board, 991 PR 

Criminal Justice Education and Iraining Standards Commission, 569 PR, 860 PR 

Pnvate Protective Services Board, 621 PR, 990 PR 

Sheriff's Education and Training Standards Division, 491 PR 

LICFN.SIXC BOARDS 

Architecture, 349 PR 

CPA Examiners, 458 PR, 810 PR 

Electrical Contractors. 741 PR 

General Contractors, 512 PR, 844 PR 

Geologists, Board for Ficensing of, 878 PR 

landscape Architects, 443 PR,^756 PR 

Medical Examiners, 604 PR. 701 PR 

North Carolina Certification Board for Social Work, 179 PR 

Nursing, Board of, 296 PR, 778 PR 

Physical Therapy Examiners, 262 PR 

Plumbing and Heating Contractors, 757 PR 

Practicing Psychologists, 606 PR 

Real Estate Commission, 993 PR 

Sanitarian Examiners, Board of, 785 PR 

Ri:\TALE 

Departmental Rules, 885 ER 
Sales and Use Tax, 353 FR 

SIAFE PERSONNEE 

State Personnel Commission, 181 PR, 210 PR. 265 PR. 461 PR, 624 PR, 786 PR. 923 PR 

STA FEMFA FS OF ORGANIZATION 

Statements of Organization, 524 SO 

TRANSPORTATION 

Division of Motor Vehicles, 140 FR. 607 ER, 648 ER 



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